what is derivative?

Answers were Sorted based on User's Feedback

what is derivative?..

Answer / raju akula

The term "Derivative" indicates that it has no independent
value. its value is entirely derived from the value of the
underlying asset.The underlying asset can be
securities,commodities,bullion,curriency,live stock or
anything else.In other words, Derivative means a forward,
future, option or any other hybrid contract of pre
determined fixed duration.

Is This Answer Correct ?    40 Yes 1 No

what is derivative?..

Answer / bindu.r

Derivatives are financial instruments whose value changes
in response to the changes in underlying variables. They
are basically contract of future date which is used to
reduce the future risk by both the parties in the contract.
Derivatives can be based on different types of assets such
as commodities, equities (stocks), bonds, interest rates,
exchange rates, indexes (such as a stock market index,
consumer price index (CPI), inflation or weather conditions.

Is This Answer Correct ?    8 Yes 1 No

what is derivative?..

Answer / priyanka

Derivative is the product whose value is derived from or
more basic variables ,called underlying .The underlying
asset can
be equity ,index foreign exchange (forex),commodity or an
asset .
Derivative products initially emerged as hedging devices
against fluctuations in commodity - linked derivatives
remained the sole form of such products for almost three
hundred years .The financial derivatives came into spotlight
in post 1970 period due to growing instability in financial
markets .However ,since their emergence these products have
become very popular and by 1990's they accounted for about
two- thirds of total transaction in derivative products.

Is This Answer Correct ?    6 Yes 1 No

what is derivative?..

Answer / mandar022

Derivatives are the products whose value is derive from
value of basic variable known as underlying
assests.underlying assests can be equity,commodity,currency

Is This Answer Correct ?    2 Yes 0 No

what is derivative?..

Answer / mallikarjun chennaram

derivative is a instrument,whose value is derived from an
underlying asset.underlyying asset may be
commodity,currency,index etc.

Is This Answer Correct ?    1 Yes 0 No

what is derivative?..

Answer / ravipolina

derivative means underlying asset where entering in to the

Is This Answer Correct ?    3 Yes 6 No

what is derivative?..

Answer / kuldeep srivastava

derivative is a indextation, because we know price of
articles of past and future by derivative

Is This Answer Correct ?    4 Yes 10 No

Post New Answer

More Accounting AllOther Interview Questions


5 Answers  

balance sheet means what?i hav to make 1 software in tat i hav to convert accounts data to tally balance sheet format?

1 Answers  

im preparing for the sbi clerical post please send me the solved questions.

0 Answers  


0 Answers  

Rams due of Rs 32500/- was settled thru adjustment of security deposit Rs 12000/-and the balance in cash.pass necessary entry

6 Answers   Accenture,

I gave cash advance of Rs. 70000 to one our enginner at site. He submitted only bills of 69000. Please tell me, how I can write these transaction in the Day book.

12 Answers  

Why Bank Reconciliation is required?Other reconciliation you do?

1 Answers   IBM,

Short Answer on _____________Whole Sale Trade

0 Answers  

what is vat and sales tex?

1 Answers  

what is payback period?

1 Answers   Capital IQ,

what is the difference between cost centre and bussiness centre?

1 Answers  

what is meant by credit derivative?

1 Answers   Wipro,