what is the meaning of derivative.
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Answer / yy
Derivatives are financial contracts, or financial
instruments, whose values are derived from value of an
underlying asset. The underlying asset on which derivatives
are based can be commodities, equities (stocks),
residential mortgages, commercial real estate loans, bonds,
interest rates, exchange rates, or indices (such as a stock
market index, consumer price index (CPI) — see inflation
derivatives — or even an index of weather conditions, or
other derivatives). Credit derivatives are based on loans,
bonds or other forms of credit.
| Is This Answer Correct ? | 9 Yes | 1 No |
Answer / sanjeev_velpuri
derivative is off balancesheet instruments which no
principle is ever paid.
| Is This Answer Correct ? | 14 Yes | 11 No |
Answer / yogesh sonar
Derivative is one financial instrument in reducing risk, in
which underlying's value in future date is decided on today.
| Is This Answer Correct ? | 2 Yes | 0 No |
Answer / ranjith
derivatives means the underlying the value of asset
| Is This Answer Correct ? | 3 Yes | 2 No |
Answer / vinay singh
Derivaties means underlying the assets ex: shares.
debancher na stocks are currency etc.
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Answer / sandeep gahlot
Derivative is a financial assets whose value is derived
from the other underlying assets( Share/commodity/debenture
etc.). In other word it is a contract between two or more
parties to exchange the thing at predetermoned rate and
date to minimise the risk.
Example :- A farmer sign a contract with wheat buyer to
sale the wheat in future at particulars date and rate. By
this way both parties are trying to minimise their risk.
Farmer covering the risk of low price and buyer covering
the risk of unavalability of wheat.
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Answer / vishal
The Derivatives are the variables were they dont have they
own value, it depends on the underlaying assest, which are
directly or indirectly related.
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Answer / pramod kshirsagar
in finanace a security whose price is dependent upon or
derived from one or more underlyiung assets .the derivative
itself is a contract between ywo or more parties.its value
is determined by fluctuations in the underlying assets.
| Is This Answer Correct ? | 1 Yes | 1 No |
Answer / sandeep gahlot
Rate of exchange at particular date in future.
| Is This Answer Correct ? | 0 Yes | 0 No |
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