Commodities

Caveat: We distinguish between Derivatives and Commodities based on a hidden distinction, namely that Commodities in our sense are physical commodities traded traditionally for actual delivery under a futures contract in exchanges, while Derivatives are more properly understood in modern usage as financial contracts, whether in option, future or swap form, transferring financial risk and not necessarily providing for actual delivery and traded both on exchanges and in the over-the-counter and banking markets (depending upon the underlying subject of the contract, for example, foreign exchange versus interest rates versus energy versus agricultural products). Commodities in the form of traditional futures contracts may be subsumed under Derivatives, but we distinguish the two in the corporate finance context for clarity's sake. Thus, you should refer also to resources at Derivatives.

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