Unlike "Options" where the buyer has the right but not the obligation, "Futures" impose a binding obligation on both parties to fulfill the contract on the maturity date.

A Put Option allows the holder to sell the asset at the strike price. They will exercise this option if the market price falls below the strike price, profiting from the decline.

Futures are standardized contracts traded on exchanges with a central counterparty (clearinghouse), virtually eliminating counterparty risk. Forwards are customized, Over-the-Counter (OTC) contracts between two parties, carrying higher counterparty risk.

In an Interest Rate Swap (IRS), the principal is "Notional". It is never exchanged. Only the interest payment streams (e.g., fixed vs. floating) based on this notional principal are exchanged between the counterparties.

Higher volatility increases the probability that the option will end up "In the Money" (profitable). Therefore, sellers demand a higher premium for taking on this higher risk. This applies to both Call and Put options.

In a CDS, the buyer pays a premium to the seller. In return, the seller agrees to compensate the buyer if the underlying debt issuer defaults. It transfers credit risk.

An FRA is a forward contract on interest rates. It allows a borrower or lender to lock in an interest rate for a future period, thereby protecting themselves against adverse movements in interest rates.

Delta represents the rate of change of the option premium with respect to the change in the price of the underlying asset.

Put-Call Parity defines the relationship between the price of a European Call option and a European Put option with the same strike price and expiration. It does not strictly hold for American options due to early exercise possibilities.

Initial Margin acts as a security deposit (good faith deposit) to ensure that parties fulfill their obligations, covering the maximum probable loss in a single day.