what mean by derivatives?

Answer Posted / babhu kanchupalli

Derivative is an asset which valu is derived from the another asset called underlying asset.
For example : Two persons A&B made a bet on a cricket match for 500 rs.once loss will be the another persons gain vice versa.Here indirectly they made a contract i.e cost of 500 rs.This contract is called derivative.The value of this contract is depends on the result of match,that is the underlying asset(match result).

Is This Answer Correct ?    0 Yes 0 No



Post New Answer       View All Answers


Please Help Members By Posting Answers For Below Questions

analyses of Cost control

1931


when will be appsc exams will held pls give me the dates

2199


Treatment of Government grant and its utilization in P

1644


what is the abrevation for JJ in form jj

1454


what is mean by tax holiday?

2129






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?

1987


Occasionally it is said that issuing convertible bonds is better than issuing stock when the firms shares are undervalued. Suppose that the financial manager of Decent Furniture Company does in fact have inside information indicating that the decent stock price is too low. Decent furniture earnings will in fact be higher than investor’s expectations. Suppose further that the inside information cannot be released without giving away a valuable competitive secret. Clearly, selling shares at the present low price would harm Decent’s existing shareholders. Will they also lose if convertible bonds are issued? If they do lose in this case, is the loss more or less than it would be if common stock is issued? Now suppose that investors forecast earnings accurately, but still under value the stock because they overestimate Decent’s actual business risk. Does this change your answer to the questions posed in the preceding paragraph? Explain.

2211


I want to know that , If we called a person for one day for drive our company van or any other purpose. so how it will accounted in our (i.e companies) Books of accounts....

834


Is form 38 mandatory to issue c form in up. thru online mode

1341


I want to validate Customer credit payment with customer invoice, When billing time, the system check the customer credit payment, if customer credit is lesser than customer bill, system should not allow the billing further process. Can I configure in sap

1665


Does any one attented HSBC audit compliance test? Please let me know asap. suraj

2339


hat is the meaning of the capital ique,and hat is capital,and ahat is ique

2113


what is meant by search report of the company n why is it prepared?

1726


Can anybody tell when sbh dispatches appointment letters for Clerical for people completed medical and scrutiny of documents on 15/08/09?

1905


In the case of Internal Reconstruction of company Accrued Int. On debenture / Outstanding int. On debenture transfer or not in capital reduction a/c . Explain

1088