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Derivatives




Consumption Asset


An asset that is held primarily for consumption (end-user needs) and not usually for investment or resale. Examples include different types of commodities such as oil, cotton, coffee, copper, iron, etc. An asset may concurrently be a consumption asset and an investment asset.

A consumption asset provides value through its use, immediate or on the future depending on its ability to be stored. Demand for a consumption asset is mainly driven by the consumption need.



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Derivatives have increasingly become very important tools in finance over the last three decades. Many different types of derivatives are now traded actively on ...
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