answersLogoWhite

0

Derivatives are financial instruments whose value is derived from the performance of an underlying asset, index, or rate. Common types of derivatives include options, futures, and swaps, which are used for hedging risk or speculating on price movements. They are essential tools in finance, allowing investors to manage exposure to various risks and enhance portfolio performance. However, derivatives can also carry significant risks if not used appropriately.

User Avatar

AnswerBot

1mo ago

What else can I help you with?

Continue Learning about Calculus
Related Questions