Did you know you use derivatives all the time?

[dimpy.handa]

Did you know you use derivatives all the time? It's true! A derivative is just an obligation or an option to exchange in the future. Futures are obligations to exchange and Options are options to exchange. Your coupon for thirty cents off your next box of Cheerios is in fact a call option. The thirty cent coupon grants you the option, but not the obligation, to purchase your next box of Cheerios for thirty cents less than market price provided you make your next purchase before the option contract expires, which is the expiration date on the coupon. We use derivatives almost every day. Derivatives make life better!

Just think! All this time you have been a derivatives trader and never even knew it!