Consider the following:

Option

Equity Swap

Future

Which among the above is / are called derivative instruments in Capital Markets?

Question

Option - Yes, Options are derivative contracts that give buyers the right, but not the obligation, to buy or sell an underlying asset at a predetermined price within a specific timeframe. They are derivatives.
Equity Swap - Yes, Equity swaps are derivatives that involve exchanging cash flows tied to an equity asset, like an index or a basket of stocks. They allow parties to gain exposure to an equity without owning the asset. So they are derivatives.
Future - Yes, Futures contracts are agreements to buy or sell an asset at a future date for a predetermined price. As they derive their value from an underlying asset, they are derivatives.

GKToday Admin · Accepted Answer

1, 2 & 3

Option - Yes, Options are derivative contracts that give buyers the right, but not the obligation, to buy or sell an underlying asset at a predetermined price within a specific timeframe. They are derivatives.
Equity Swap - Yes, Equity swaps are derivatives that involve exchanging cash flows tied to an equity asset, like an index or a basket of stocks. They allow parties to gain exposure to an equity without owning the asset. So they are derivatives.
Future - Yes, Futures contracts are agreements to buy or sell an asset at a future date for a predetermined price. As they derive their value from an underlying asset, they are derivatives.

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