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What do u mean by Derivatives and its types?
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Answer Posted / p n l narayana
A security whose price is dependent upon or derived from
one or more underlying assets. The derivative itself is
merely a contract between two or more parties. Its value is
determined by fluctuations in the underlying asset. The
most common underlying assets include stocks, bonds,
commodities, currencies, interest rates and market indexes.
Most derivatives are characterized by high leverage
TYPES: futures,forwards,options and swaps
| Is This Answer Correct ? | 11 Yes | 3 No |
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