what is derivatives?
Answers were Sorted based on User's Feedback
It can be defined as something which derives its value from
an underlying product being a stock,currency,or anything
that carries a market price.The market price is subject to
fluctuations due to vapour factors defeating its demand and
supply there by associating itself to various stand alone
factors. So derivatives is a by-product of the core
product,which can be used to hedge, speculate and also
undertake arbitrage activities.
| Is This Answer Correct ? | 4 Yes | 0 No |
Answer / ravinder.sunkara
derivatives are financial contracts or financial instruments, whose prices are derived from the price of something else (known as underlying ) THE underlying prise on which a derivative is based can be that of an asset
ex: commodities equity , residential mortgage ,commercial, real estate loan, bonds
| Is This Answer Correct ? | 1 Yes | 0 No |
Answer / venkateswar reddy
Dervative is a instrument through which we can derive the
value.
That instrument is called underlying asset, through which
we can derive the value.
Derivatives can be divided into 2
one is Futures and another one is options
| Is This Answer Correct ? | 1 Yes | 1 No |
Answer / 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 |
give detail expansion about MIS Report?
5 Answers Oriental Bank Of Commerce,
how to solve the problem of sechdule date problem in sap proframme.
what is procedure to transfer funds between companies registered under sec 25 of the companies act? Is there is possible to get exemption certificate?
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?
hi Please help me for my interview in syntel so please guiad
If you have a charitable parent company, limited by guarantee, and a trading subsidiary, which is also a company, which accounts will have to be prepared for the parent company?
What is the criteria for appointment of a CS in a company?
STATE & EXPLAIN THE IMPACT OF GLOBAL FINANCIAL CRIS ON CEMENT SECTOR IN INDIA:
How do you annalyse the Goodwill value of the Company ?? does the net worth value is the same as Goodwill value or wht ??
What is the percentage of DA to be cut from an employee salary ?
STATE THE DIFFERENCE BETWEEN BANKING FIS AND NON BANKING FIS
what is deferred profit ?