meaningofderivative?
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Answer / anandsurya
One value of an asset is derived from the one or more
underlying assets
Types of derivatives are
1)Futures
2)Forwards
3)Options
4)Swaps
| Is This Answer Correct ? | 4 Yes | 0 No |
Answer / laxman
Derivative is a financial asset,it does not have a any
physical form but the physical form is depends up on the
some other underlying assets.
ex; the BSE physical form depending on the 30 shars of
differnt companies, here BSE is a derivative and 30 are
underlying assets
| Is This Answer Correct ? | 2 Yes | 0 No |
Answer / divay agarwal
Derivatives are financials products whose values are
derieved from the underlying asset...
example
futures
options
swaps
forwards
| Is This Answer Correct ? | 1 Yes | 0 No |
Answer / bhaskar
Derivative is a financial contract whose payoff structure
is determined by the value of an Underlying asset.
The underlyings may be Stocks,Financial
indices,forex,Commodities,Bonds,interest rates etc.
Different variants of derivatives are
Options,Forwards,futures,SWAPS,SWAPTIONS.
| Is This Answer Correct ? | 1 Yes | 1 No |
Answer / kalyani
Securities that derive their value from other financial
instruments that are used by the insurance company to hedge
its bets on which direction the market is moving. For
example, cattle futures are a simple derivative in that the
cattle futures contract increases or decreases in value as
future prices change for cows on the hoof. When insurance
companies use derivatives, they are more likely to use them
in association with currency and interest rate transactions
as a means of protecting themselves against adverse moves
in interest rates or foreign currency exchanges. This
instrument provides a mechanism for hedging against the
interest rate risks that are inherent within insurance
products by pricing in that risk in advance and protecting
against future negative occurrences.
| Is This Answer Correct ? | 1 Yes | 1 No |
Answer / narenderreddy
underlyling volue of an asset.
a derivative is simply a financial instrument(even more
simply an agreement between two people)which has value
determined by the price of some thing else.
| Is This Answer Correct ? | 0 Yes | 0 No |
Answer / usha
Derivative means nothins but group of securities. like
furture forwards options swaps
| Is This Answer Correct ? | 0 Yes | 2 No |
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