what is derivative?
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Answer / raju akula
The term "Derivative" indicates that it has no independent
value. its value is entirely derived from the value of the
underlying asset.The underlying asset can be
securities,commodities,bullion,curriency,live stock or
anything else.In other words, Derivative means a forward,
future, option or any other hybrid contract of pre
determined fixed duration.
| Is This Answer Correct ? | 40 Yes | 1 No |
Answer / bindu.r
Derivatives are financial instruments whose value changes
in response to the changes in underlying variables. They
are basically contract of future date which is used to
reduce the future risk by both the parties in the contract.
Derivatives can be based on different types of assets such
as commodities, equities (stocks), bonds, interest rates,
exchange rates, indexes (such as a stock market index,
consumer price index (CPI), inflation or weather conditions.
| Is This Answer Correct ? | 8 Yes | 1 No |
Answer / priyanka
Derivative is the product whose value is derived from or
more basic variables ,called underlying .The underlying
asset can
be equity ,index foreign exchange (forex),commodity or an
asset .
Derivative products initially emerged as hedging devices
against fluctuations in commodity - linked derivatives
remained the sole form of such products for almost three
hundred years .The financial derivatives came into spotlight
in post 1970 period due to growing instability in financial
markets .However ,since their emergence these products have
become very popular and by 1990's they accounted for about
two- thirds of total transaction in derivative products.
| Is This Answer Correct ? | 6 Yes | 1 No |
Answer / mandar022
Derivatives are the products whose value is derive from
value of basic variable known as underlying
assests.underlying assests can be equity,commodity,currency
etc.
| Is This Answer Correct ? | 2 Yes | 0 No |
Answer / mallikarjun chennaram
derivative is a instrument,whose value is derived from an
underlying asset.underlyying asset may be
commodity,currency,index etc.
| Is This Answer Correct ? | 1 Yes | 0 No |
derivative means underlying asset where entering in to the
contract
| Is This Answer Correct ? | 3 Yes | 6 No |
Answer / kuldeep srivastava
derivative is a indextation, because we know price of
articles of past and future by derivative
| Is This Answer Correct ? | 4 Yes | 10 No |
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