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Derivatives

  Derivatives   |   Terms
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  • November 5, 2022
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Commodity Product

A physical asset such as base metals, precious metals, crude oil, natural gas, heating oil, gasoline, wheat, rice, livestock, and so on. Commodity products are used to underlie derivative contracts such as futures contracts, forward contracts, option contracts, and swap agreements. Derivative contracts whose underlying is a commodity product are known as commodity derivatives (commodity futures, commodity forwards, commodity options, and commodity swaps).


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