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Futures Contract
An agreement to buy or sell a particular commodity or financial instrument at a predetermined price at a specified time in the future.
Underlying Asset
An asset (such as a stock, bond, commodity, or currency) upon which a derivative instrument, such as an option, is based.
Interest Rate Futures
Financial futures contracts that obligate the buyer to purchase an asset (like Treasury bills) with a fixed interest rate at a future date.
Federal Funds
Short-term funds transferred between financial institutions, typically overnight, at an interest rate set by the Federal Reserve in the United States.
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