Abstract
Introduction The history of Financial derivatives can be traced back to 600 B.C. (Jungel1), when options on Olive Oil presses were first introduced. This was later followed by options on Tulips in Holland in 1630s, where the first market crash took place in 1637. Then in 1650 standardized futures on rice were traded in Japan. In 1728, options of Royal West Indian Company came up. 1848 saw the opening of Chicago Board of Trade with the Chicago Stock Options Exchange opening up in 1973 as the first proper market for trading of derivatives.
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