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 |
what is the meaning of CTT
How many Extra Ordinary General Meetings should be conducted for a financial year
give detail expansion about MIS Report?
5 Answers Oriental Bank Of Commerce,
why share issued over the par value? or why issue share by share premium?
What is Amalgamation
what is rate of service tax and form no. of service tax ? wt rules of service tax a particuler once .?
What is the difference between " Public Ltd." "Pvt Ltd." "Paternship Firm", "Properitorship Firm"? Give detail information of this?
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?
what is the procedure to start any company? who will fix this share value?how to go for pulic issue?
Does any one attented HSBC audit compliance test? Please let me know asap. suraj
what is form No.32 in MCA?
5 Answers AV Bistro Private Limited, Harit Path, Hero Mindmine Institute,
how to prepare a MIS report
1 Answers Sai Softech, UCA, VT Vacuum Technologies,