4/29/2023 0 Comments Basic financial derevatives![]() ![]() ![]() So derivatives are the collective name used for a broad class of financial instruments that derive their value from other financial instruments (known as the underlying), events or conditions. Thus, the underlying in the agreement is the price of corn and the value of the agreement to you depends on that underlying. If the price is more than $3 you pay your friend $1. ![]() If the price in one year is less than $3 your friend pays you $1. Suppose you bet with your friend on the price of a bushel of corn. Derivatives can be thought of as bets on the price of something. IntroductionĪ derivative is a financial instrument (or more simply, an agreement between two people/two parties) that has a value determined by the future price of something else. Before moving towards the definition of main purpose and significance of our research article, we want to give a brief introduction of the core keywords of our research article which are ‘Financial Derivatives’. Our research article is ‘Determinants of Financial Derivatives’. Share this: Facebook Facebook logo Twitter Twitter logo Reddit Reddit logo LinkedIn LinkedIn logo WhatsApp WhatsApp logo Introduction ![]()
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