what is the meaning of derivative.
Answer Posted / chandu_c4u
Derivatives are financial instruments whose value changes
in response to the changes in underlying variables. The
main types of derivatives are futures, forwards, options,
and swaps.
The main use of derivatives is to reduce risk for one
party. The diverse range of potential underlying assets and
pay-off alternatives leads to a huge range of derivatives
contracts available to be traded in the market. Derivatives
can be based on different types of assets such as
commodities, equities (stocks), bonds, interest rates,
exchange rates, or indexes (such as a stock market index,
consumer price index (CPI) — see inflation derivatives — or
even an index of weather conditions, or other derivatives).
Their performance can determine both the amount and the
timing of the pay-offs.
| Is This Answer Correct ? | 184 Yes | 20 No |
Post New Answer View All Answers
All shot cut key use in the tally software & it's uses
what s BSPL and its significance?
A crushing unit blasted 1650Mts in the month of March 2009. The rate of Royalty to be paid is rs 35/- Per MT. Advance royalty was paid rs 250000/- on 1-3-2009. pass journal entries from the advance royalty
what types of essays are giving in bank of america. can any one tell the opics? LAVANYA
How Many Types of Excise Duties?
wht can u do for the growth of bhel?
I am Lavanya i have been selected in HR round in HP INVENT and i have Operation round as next round may i know what will they ask here and after this what is the next round?????
Expand-------------BRTS
How does the ration analysis help in depicting profit and loss
fd redeem interest and principal entry in tally
what are the different causes for discrepencybetween the balance of cash book and pass book
what are Equity shares,Preference shares,Bonus shares,Bond,Debentures,Dividend?
What three Specific Job Positions do you target from the Industry
barwaha
In sales what rule applicable