BBA Exam Cheatsheets

TU BBA 8th Semester

Complete BBA exam cheatsheets with formulas, key points & definitions — Financial Derivatives, Corporate Financing Decision & more specialization subjects

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Financial Derivatives

BNK 202

BBA 8th Semester · Banking & Finance Specialization · 3 Credit Hours · 48 LHs

Unit 1: Introduction

Derivative: A financial instrument whose value depends on (is derived from) the value of an underlying asset, rate, or index.

Types of Derivatives

Instrument	Description	Traded On
Forward	Customized contract to buy/sell at future date at agreed price	OTC (Over-the-Counter)
Future	Standardized forward contract traded on exchange	Exchange
Option	Right (not obligation) to buy/sell at a certain price	Both OTC & Exchange
Swap	Agreement to exchange cash flows between two parties	OTC