. The derivatives market is the financial market for derivatives, financial instruments like future contract, options or swaps, which are derived from other forms of assets.

1,The evolution of derivatives instruments has meant that each new derivative was an improvement on its predecessor. State the operational advantage(s) of i. Futures over Forwards and ii. Options over Futures/Forwards 2. Who are the key categories of players in derivatives markets? Briefly describe the objective of each category of players.