10. Other Products Flashcards
What are freight derivatives.
Derivative on freight indices such as the Baltic Dry Index
Name three emissions
Carbon dioxide, sulphur dioxide and methane
What is required to trade in emissions.
Global carbon currency known as CERS (certified emissions reductions)
Explain weather derivatives
Trading via a weather index - remember Heating degree days (HDD) and Cooling Degree Days (CDD)
What is cryptocurrency
A digital asset / virtual currency
How is cryptocurrency traded
On a decentralised market
Why is there increasing regulatory attention around cryptocurrency
Debating whether it is a currency or a transferable security
What are property derivative
Derivatives on a property index
What are volatility derivatives
Derivatives on a volatility index, such as the VIX
What are hybrid derivatives?
Combining two different types of derivatives in one contract.
