Why are futures and option contracts avaliable on only a limited set of assets?

Question

Compared to other's such as Swaps and Forward Rate Agreements

Answer 1

it is because it needs enough volatility to trade.

Answer 2

lack of demand.

you can write any type of option on any security - as long as you can find someone to take the other side of the trade.

Answer 3

I wouldn't use the word "limited". You've got futures all major commodities, stock indices, interest rates and currencies.

If you are referring to options on stocks then it is mainly due to liquidity. Not all stocks are liquid and if they are not liquid then options will be even less liquid.