what mean by derivatives?
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Answer / om
derivative is a tailor made contract traded at exchanges,
between the parites, to be settled at a future date (also
known as settlement date)at price prevalling at the
settlement date of an underlying asset.
| Is This Answer Correct ? | 6 Yes | 1 No |
Answer / manojs
its a financial insturement who value is based on factors
interest rate,exchange rate, principal amt, credit rate.
for which little or no initial investment is required
purpose
to hedge the business or for specaluations
| Is This Answer Correct ? | 4 Yes | 1 No |
Answer / suraj k
derivatives are nothing but underlying securities,in other
words deriving the value of securities as underlying
securities.
| Is This Answer Correct ? | 1 Yes | 0 No |
Answer / babhu kanchupalli
Derivative is an asset which valu is derived from the another asset called underlying asset.
For example : Two persons A&B made a bet on a cricket match for 500 rs.once loss will be the another persons gain vice versa.Here indirectly they made a contract i.e cost of 500 rs.This contract is called derivative.The value of this contract is depends on the result of match,that is the underlying asset(match result).
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Answer / romesh.....bangalore
ups and down in stock,liabilities and assets, and over all
business
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