whats Derivative?

Answer Posted / sagar

The derivative itself is merely a contract between two or
more parties. Its value is determined by fluctuations in the
underlying asset. The most common underlying assets include
stocks, bonds, commodities, currencies, interest rates and
market indexes. Most derivatives are characterized by high
leverage.
Futures contracts, forward contracts, options and swaps are
the most common types of derivatives

Is This Answer Correct ?    1 Yes 0 No



Post New Answer       View All Answers


Please Help Members By Posting Answers For Below Questions

What Are Npas?

679


What is demand promissory note?

646


differentiate between revenue deficit and fiscal deficit?

707


What do you mean by financial reporting?

611


What do you understand by divestment? How is it different from investment?

638






Tell me what is gross profit and net profit?

674


Give Any Three Advantages of Joint Stock Company?

606


What are your views on the performance of India Paralympics?

632


What are Preference Shares?

668


Mention the difference between bills payable and bills receivable?

578


What is return on shareholder s funds?

590


What is appreciation and depreciation of currency?

680


What does money laundering involve?

703


what are the fundamental reasons behind the present worldwide economic downturn?

1987


Do you know about NPA?

674