What is a forward rate agreement?
A forward rate agreement is an agreement to lend money on a particular date in the future at a rate that is determined today. It is like a forward contract where the underlying asset is a bond. What is a futures contract?[Top ] Futures are standardized forward contract that are traded on an exchange and where the counter-party (the party with which the contract has been signed) is the exchange itself. What are options?[Top ] Options are one-way contract where one party has the right but not the obligation to trade in a particular asset at a particular price on a pre-determined date/dates or in a particular time interval.
