Answer Posted / deepak tapadiya
A derivative can be defined as something which derives its
value from an underlying product being a stock, currency,
commodity or anything that carries a market price.
The market price of a product is subject to fluctuations due
to various factors effecting its demand & supply thereby
associating itself to various risk factors.
SO, derivative is a by-product of the core product which can
be used to hedge, speculate & also undertake arbitrage
activities.
| Is This Answer Correct ? | 10 Yes | 0 No |
Post New Answer View All Answers
What causes Sub- prime crisis?
When purchasing a stock what charges are payable?
What is the current price/level of: the FTSE 100, S&P 500, the Bank of England base rate, LIBOR, a barrel of Brent Crude, an ounce of gold, the US dollar, and the euro?
How can you check company statutory details?
What is difference between FII and FDI?
What does the statement of Inventory be used for?
How many types of organizations we can establish in India?
Do you know what LAF is?
Accounts payable questions
can you explain the dealer management in the auto mobile industry
Suggest me where i can do certification course on capital management/wealth management through distance in and around Bangalore.
hai friends .i applied for icici po callfor in july2010.i have been sortlisted for icici bank po and they fix the appoinment on july 31.so i don't know whether it is an interview or test or gd.can any body attend it already .please tell about it and how to prepare.my email id is anbuselvi16@gmail.com
How many type of deposits does indian banking deal with?
What is Prime Lending Rate?
What is debit card?