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What Determines the Success or Failure of an Exchange-Traded Derivative

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Essay

What determines the success or failure of an exchange-traded derivative contract? Why were currency and interest rate futures introduced in the early and late 1970s,respectively?

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Definitions:

Market Value

The current price at which an asset or service can be bought or sold in an open market.

Future Earnings

The projected income a company or individual is expected to generate in upcoming periods.

Investing Human Capital

The process of improving the workforce's skills and knowledge through education, training, and experience to enhance productivity and economic value.

Present Discounted Value

The current value of a future sum of money or stream of cash flows given a specified rate of return, used in time value of money calculations.

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