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Answer: After stocks and debts, the derivative market is an important financial instrument. The derivative market in finance is basically a contract which procures its value from the performance of the underlying entity such as asset, interest rate or index.
Answer: The derivative market value is determined by the level of performance of underlying entity. When there are fluctuations seen in the underlying asset, the derivative will obtain its price.
Answer: The most common type of derivative market are:
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