Derivative (finance)/Definition: Difference between revisions

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In finance, an asset whose agreed value depends upon the expected value of another asset. A typical example is a futures contract which is an undertaking to buy a stipulated asset at a stipulated price at a stipulated  future time. Other examples  are options and futures contracts. Some derivatives can be used for ''hedging'' against risk.
In finance, an asset whose value depends upon the expected value of another asset.

Revision as of 03:23, 3 December 2009

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Derivative (finance) [r]: In finance, an asset whose value depends upon the expected value of another asset.