What is Derivative and different types of Derivatives?
Difference between Call and Put Option?
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Answer Posted / shweta ambawale
Derivative is financial instrument or agreement between two
parties that has a value based on expected future pries
movement of asset.called underlying asset such as share or
currency.
swaps,future, forward, option are different types of
derivatives.
option is contract between two parties to buy or sell an
asset at reference price.
option which convey the right to bye something is called
call or option which convey the right to sell something is
called put.
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