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WHAT IS DERIVATIVE?
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Answer / pooja gupta
Derivative is a financial instrument whose value is
derieved from the underline security or asset.
The underline security can be Equity ,Forex ,Commodity or
any other asset.
Ex. Curd is the derivative product of milk.Here milk is
underlying security .
| Is This Answer Correct ? | 5 Yes | 1 No |
Answer / ashish
derivatives can defined as which value derived from other
assets this assets can be stock,gold or any other
commoditied.
the examples of derivatives are future,option,swap etc.
| Is This Answer Correct ? | 9 Yes | 6 No |
Answer / anusha.p
A Derivative is a financial instrument ,whose value depend
on the value of other asset.
| Is This Answer Correct ? | 9 Yes | 6 No |
Answer / lokesh jain
Deriative is the value derieved from underlying asset,
underlying asset may be in form of stock, foreighn currency
etc.
| Is This Answer Correct ? | 4 Yes | 1 No |
Answer / nidhi shah
Derivatives are of 2 types: FUTURES and OPTIONS.
As the name suggests, DERIVATIVES means financial
instruments having "DERIVED VALUE".
FUTURES: You buy a COMPANY ABC Stock today at Rs 1050/-
(just for Eg). U enter into a contract with me, to sell the
stock for Rs 1070/- after 1 month. On the D day,
irrespective of whatever is the Market Price of the Stock u
will have to sell it to me at Rs 1070. Reason being, u have
entered into a Future Contract with me, and it is the
obligation of both parties to fulfill the contract.
OPTIONS: It is same as FUTURES, but u have the OPTION to
cancel the contract. that is to say, if the Market price of
the stock on the D day is more than 1070, u can withdraw
your sale contract from me. Options are NOT OBLIGATORY.
In both cases, u pay something called as a MARGIN MONEY, to
enter the contract.
| Is This Answer Correct ? | 3 Yes | 0 No |
Answer / l.lovaraju
derivative is a financial product and financial instrument
derived from the underlying asste
| Is This Answer Correct ? | 4 Yes | 2 No |
Answer / sherry
derivative is like a man can buy billion tons of water but
still thirsty.
| Is This Answer Correct ? | 2 Yes | 0 No |
Answer / anu thomas
A derivative can be defined as something which
derives its value from an underlying product being a stock,
currency, commodity or anything that carries a market
price.
| Is This Answer Correct ? | 2 Yes | 0 No |
Answer / narendra vakare
A derivative is financial instrument which derives their
value from the underlying assets. The assets can be a
comodity such as wheat,rice or financial instruments.
from this perspective we can understand that derivative is
nothing but a financial instruments which generate their
value from the underlying assets. it may be a weather
derivative or financial derivative.
| Is This Answer Correct ? | 2 Yes | 1 No |
Answer / sandeep kumar verma
A DERIVATIVES IS THE FIANCIAL PRODUCT WHICH VALUE IS DEPENDS
UPON THE UNDERLAYING ASSETS, THESE MAY BE IN FORM OF SHARE,
BOND AND OTHER SEECURITIES.
| Is This Answer Correct ? | 2 Yes | 1 No |
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