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    What is a derivative security? And, why is it important?

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    What is a derivative security? And, why is it important?

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    What is a derivative security? And, why is it important?

    A derivative security is a type of financial asset in one of several forms. It is an actual contract that is formed between the purchaser and the seller of the derivative that specifies the terms and conditions of derivative payments. The derivative itself is not a financial asset but is instead a contract. The price of the derivative is based on the actual underlying financial asset that the derivative contract is ...

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