Derivatives: A Brief History

This lecture covers the concept of derivatives, starting with a definition as a promise dependent on underlying assets or variables. It delves into the history of derivatives, from the Sumerians to the development of transferable contracts in Osaka, Japan. The lecture also explores the evolution of derivative markets, such as the Dojima rice exchange and the Chicago Board of Trade, emphasizing the standardization of products. Additionally, it explains the nature of derivative securities as contracts tied to the values of underlying assets or variables.