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assets whose pay-off is determined by the prices or by the pay-off of other underlying assets

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15y ago

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The three basic Types of financial assets traded in market?

Debt Equity Derivative


What is derivative exposure?

Derivative exposure refers to the risk associated with financial derivatives, which are instruments whose value is derived from an underlying asset, index, or benchmark. This exposure arises from fluctuations in the prices of the underlying assets, potentially leading to gains or losses for the holder of the derivative. It can be used for hedging purposes to mitigate risk or for speculation to profit from price movements. Managing derivative exposure is crucial for investors and institutions to maintain financial stability.


Is it derivative of or derivative from?

"Derivative of"


What are derivative liabilities?

Derivative liabilities are financial obligations that arise from derivative contracts, such as options, futures, and swaps. These liabilities represent the potential future outflows of cash or other assets that a company might face if the market moves against its position in the derivative. They are recorded on the balance sheet at fair value and can fluctuate based on changes in market conditions. Essentially, they reflect the company's exposure to market risks and are an important aspect of managing financial risk.


What is the second derivative of a function's indefinite integral?

well, the second derivative is the derivative of the first derivative. so, the 2nd derivative of a function's indefinite integral is the derivative of the derivative of the function's indefinite integral. the derivative of a function's indefinite integral is the function, so the 2nd derivative of a function's indefinite integral is the derivative of the function.


How is motion and position related?

Velocity is the derivative of position.Velocity is the derivative of position.Velocity is the derivative of position.Velocity is the derivative of position.


What is derivative in financial?

A security whose price is dependent upon or derived from one or more underlying assets. 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. For more detailed information, refer to the Investopedia website.


What is financial derivative?

A security whose price is dependent upon or derived from one or more underlying assets. 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. For more detailed information, refer to the Investopedia website.


Prove that a constant vector always has a perpendicular derivative?

A dot A = A2 do a derivative of both sides derivative (A) dot A + A dot derivative(A) =0 2(derivative (A) dot A)=0 (derivative (A) dot A)=0 A * derivative (A) * cos (theta) =0 => theta =90 A and derivative (A) are perpendicular


What is the derivative of e7x?

The derivative of e7x is e7 or 7e.The derivative of e7x is 7e7xThe derivative of e7x is e7xln(7)


How do you take the derivative of a trig function?

Trig functions have their own special derivatives that you will have to memorize. For instance: the derivative of sinx is cosx. The derivative of cosx is -sinx The derivative of tanx is sec2x The derivative of cscx is -cscxcotx The derivative of secx is secxtanx The derivative of cotx is -csc2x


What is the derivative of 40?

The derivative of 40 is zero. The derivative of any constant is zero.