Derivatives - I

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For general derivatives, define and recognize the definitions of the following terms:

• Derivative, Underlying asset, Over-the-counter market

• Ask price, Bid price, Bid-ask spread

• Short selling, Short position, Long position

• Stock index

• Spot price

• Net profit/payoff

• Credit risk

• Marking-to-market

• Margin, Maintenance margin, Margin call