As mentioned before, the value of derivatives is based on different types of underlying
values, including assets such as commodities, equities (stocks), bonds, interest rates,
exchange rates, or indexes such as a stock market index, consumer price index (CPI), or
Th e value of
derivatives
is based on
diff erent types
of underlying
values
Case 10: Banking Industry Meltdown: The Ethical and Financial Risks of Derivatives 399
even an index of weather conditions