In 1975,financial institutions developed financial derivatives that included ________.

Question

Quizplus · Accepted Answer

Financial derivatives refer to various types of contracts whose value is tied to underlying assets or financial instruments. Futures contracts are one of the earliest and most common types of financial derivatives, and they were first introduced in the 1970s as a way for investors to hedge their exposure to commodity prices. While adjustable-rate mortgages and virtual banks are products that were also introduced in the 1970s and 1990s respectively, they are not typically considered financial derivatives. Financial engineering is a term used to describe the use of mathematical models and quantitative methods to create new financial products, and while it is closely related to financial derivatives, it is not a specific product or contract in itself.

In 1975,financial Institutions Developed Financial Derivatives That Included ________