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Understanding Financial Derivatives by pratik_matai is a document available to read on EtoBox.
1) A derivative is a financial instrument whose value is based on an underlying asset such as a stock, bond, currency, or commodity. 2) Common types of derivatives include futures, options, swaps, and more exotic instruments linked to natural disasters or weather. 3) While derivatives have value on their own, they derive that value from the performance of the underlying asset. Changes in the value of the underlying asset affect the price of the derivative.
- Author
- pratik_matai
- Language
- EN