Interested to Buy Any Domain ? << Click Here >> for more details...
Answer Posted / rahul
derivative is an one kind of speculation device which can
use in stock market to earn good amount of money in shorter
period.for example if one farmer have 10 kg of rise which
current market price is 10*12=120, 120 is spot price and if
farmer wait for some month and he deal with other person,
come with contract and decide the future price of rise is
130, it is derive from spot price of rise and decided to
sale rise in future at rs 13 per kg.this type of
transaction called as derivative transaction. which means
price of rise decide through observation of current market
price, which help in reduce uncertain losses happen in
future due to market condition.
there is some component
like
hedging
arbitrage
all component of derivatives which use in transaction
| Is This Answer Correct ? | 8 Yes | 0 No |
Post New Answer View All Answers
Is California Chapter 7 (straight Bankruptcy) Bankruptcy Right For Me?
Explain the Weak-form, semi-strong from and strong-from of Effiency?
What is CAR?
How To Enable And Disable System Administration Mode?
Explain secured loans
What are quasi sovereign bonds?
What Are The Different Types Of Loans Offered By Commercial Banks?
What are the main issues to be negotiated in an M&A deal?
What is the age limit for the clerk recruitment in tmb?
What is the Full form of SWIFT and what are the features and benefits?
What Is Sensex And How It Is Calculated?
Any idea about PayPal?
Critically examine the importance and methodology of case study. What are its merits and limitations?
What is effect of demonetization on your household, in particular?
Can you suggest me some good reference books on ADR/GDR/IDR which covers history, objectives, problems, theory and workings of GDR.
