... underlying can be commodities, interest rates, exchange rates, index or equities, bonds and so on The main types of derivatives are options, futures, forwards and swaps An interest rate derivative ... Chapter Introduction of Interest rate Derivatives § 1.1 Concepts in Interest rate and Rational pricing § 1.1.1 Interest rate and Libor Interest rates are used to define the amount of money paid by ... studies science of fund management like borrowing, lending and investing capital In financial markets, people purchase and sale of stocks, bonds, commodities, futures and options, and other derivatives...