adspace


what is derivatives?

Answer Posted / babhu kanchupalli(dms)

Derivative is an asset which value is derived from the another asset called underlying asset.

For example : A&B made a bet on cricket match for 500 rc.Indirectly it means they are entering into a contract.Here this contract is called a derivative value of 500.The execution of this contract is depends on the match result.one person gain will be the another person loss vice versa.The match result is the underlying asset.

Futures,forwards,options,swaps are the examples of financial derivatives.

Is This Answer Correct ?    0 Yes 0 No



Post New Answer       View All Answers


Please Help Members By Posting Answers For Below Questions

Does any one attented HSBC audit compliance test? Please let me know asap. suraj

2898


I am Simrat Kaur. I am persuing graduation from P.U. I have an experience of 14 months as a CSA. But i hav an experience letter of 6 months.But I can show my joinin letter of the other job. I hav knowledge of basics of computer & internet. Actually, m findin job in chandigarh. I am findin the right opportunity. so, Can u plz help me in findin the right job?? Can u plz tel me abt where interviews r goin on?

2620


when will be appsc exams will held pls give me the dates

2758


Treatment of Government grant and its utilization in P

2206