Currency options is "a contract giving the buyer the right but not the obligation to exchange a specified amount of one currency into another specified currency on or before a specified date at a specified rate of exchange. The buyer (holder) of the option pays a 'premium' to its writer (seller)". An option is a contract that gives the holder [...]
Financial futures contracts were first introduced by International Monetary Markets Division of Chicago Mercantile Exchange in order to meet the needs for managing currency risks, and promoted by a galloping growth in international business. London International Financial Futures and Options Exchange (LIFFE), set up in 1982 had been dealing in currency futures, but have restricted their activity to interest rate [...]
A commodity futures is a contractual agreement between two parties to buy or sell a specified quantity and quality of commodity at a certain time in the future at a certain price agreed upon at the time of entering into the contract on the commodity futures exchange. The primary objective for any futures exchange is effective price discovery and efficient [...]