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Can a Non-Fungible Token (NFT) Be Used as the Underlying Asset for a Derivative Contract?

Yes, an NFT can be the underlying asset. A derivative contract, such as a futures or options contract, can be created based on the future price of a specific, unique NFT.

This allows traders to speculate on the NFT's value without owning it. The complexity lies in pricing the unique asset and ensuring proper liquidation mechanisms in the smart contract.

What Is a Fungible Token versus a Non-Fungible Token (NFT)?
What Is the Fundamental Difference between Fungible and Non-Fungible Tokens in a Financial Context?
What Is the Primary Difference between Fungible and Non-Fungible Tokens?
Can a Non-Fungible Token (NFT) Be Fractionalized, and What Standard Governs This?