1. Consists of purchase or sale of commodities in two different markets with the expectations that a future change in price in one market will be offset by an opposite change in the other market
b. Swap
2. A contract in which a seller agrees to deliver an asset to a buyer at a predetermined price at some future date as privately negotiated
c. Hedging
3. A contractual agreement for exchanging a steam of payments with opposite and matching needs, to reap the benefit arising due to market discrepancies
d. Forward
4. A contract covering the purchase and sale of physical commodities or financial instruments for future delivery on a future exchange floor
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