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Reading 56  Derivative Markets and Instruments (Layout)
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This reading is organized as follows:

Section 2 explores the definition and uses of derivatives and establishes some basic terminology.

Section 3 describes derivatives markets.

Section 4 categorizes and explains types of derivatives.

Sections 5 and 6 discuss the benefits and criticisms of derivatives, respectively.

Section 7 introduces the basic principles of derivative pricing and the concept of arbitrage.

Section 8 provides a summary.
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Reading 56  Derivative Markets and Instruments (Intro)
nefits of derivatives? What are some criticisms of derivatives and to what extent are they well founded? What is arbitrage and what role does it play in a well-functioning financial market? <span>This reading is organized as follows. Section 2 explores the definition and uses of derivatives and establishes some basic terminology. Section 3 describes derivatives markets. Section 4 categorizes and explains types of derivatives. Sections 5 and 6 discuss the benefits and criticisms of derivatives, respectively. Section 7 introduces the basic principles of derivative pricing and the concept of arbitrage. Section 8 provides a summary. <span><body><html>


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