what is derivative?

Answer Posted / 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



Post New Answer       View All Answers


Please Help Members By Posting Answers For Below Questions

Q13. Journalise the following transactions: Proprietor withdrew for private use Rs.4000/- from bank and 6000/- cash. Goods Costing Rs.5000 was burnt by fire. Purchase Machinery for cash Rs.150000/- and paid Rs.2000/- on its Installation. Charge 5% Depreciation on building costing Rs.200000/- and 8% Depreciation on Furniture costing Rs.5000/-. Prepaid Salary Rs2000/- Kapil who owed us Rs20000/- become insolvent and nothing is received from his estate.

2427


How Are The Balance Sheet And Income Statement Connected?

733


If its is declared by auditor that business is not going concern that what journal entry will be pass?

1483


define drawer or maker

3785


closing stock at the end is comprised of %a purchase price of $60000,10% discount and 15% import duty.The stock can be sold for $70000 after incurring costs of $1950.Included in the purchase price is abnormal wastage of $2000.Transportation costs are $1000 and storage costs are $500,what is the value of the closing stock?

1250






WHAT IS BANK RECONCILIATION STATEMENT? DIFFERENCE BET PUBLIC COMPANY AND PRIVATE COMPANY? MEMBERS IN PUBLIC CO AND PRIVATE COMPANY? WHAT IS DEPRECIATION?

1760


fill in the Blanks Share Holders in Company have _____________Liability

1560


which are company offering jobs in PORTFOLIO MANAGEMENT ?

1789


What is the difference between Balance Sheet , Chart Of Accounts and trial Balance?

2179


Dear Sir/Madam, Executive Trainee...Finance I had been called for NTPC Group discussion and GD please guide me for getting success in GD and interview...

1971


In Pricing the gallons of petrol sold,service station 'A' follows the first-in-first-out method,while service station'B'follows last-in-first-out method.On 1st January both has the same quantity in stock viz.6,000 gallons at Rs.26 per gallon.During the month,each station recieved additional supplies of 6,000 gallons at Rs.27.50 per gallon.Sales for each of these two stations,during the month,were 8,800 gallons at Rs.29 per gallon. Determine for each service station,profit earned during the month and value of the petrol in stock at close of the month.

3611


INTE3RNATIONAL ACCOUNTING STD

1809


How to Calculate Mortgage?

1896


what is cost audit?

1617


what do u mean by single error and double error in accointing errors?

1724