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Graph the equation.
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Financial Asset
Any asset that is cash, the right to receive cash or another financial asset, or an equity instrument of another entity, such as stocks, bonds, or derivatives.
Underlying Asset
An asset upon which a derivative’s price is based, such as stocks, bonds, commodities, or currencies.
Futures Contracts
Standardized legal agreements to buy or sell a particular commodity or financial asset at a predetermined price at a specified time in the future.
Marking-to-market
The practice of updating the value of an asset to its current market level rather than its book value for accounting purposes.
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