Search results
Results from the WOW.Com Content Network
The word derivative sounds fancy and perhaps a little intimidating. But the key thing to know about derivatives is that they are a financial contract whose value is derived from the value of ...
In finance, a derivative is a contract between a buyer and a seller. The derivative can take various forms, depending on the transaction, but every derivative has the following four elements: an item (the "underlier") that can or must be bought or sold, a future act which must occur (such as a sale or purchase of the underlier),
Financial instruments are monetary contracts between parties. They can be created, traded, modified and settled. They can be cash (currency), evidence of an ownership, interest in an entity or a contractual right to receive or deliver in the form of currency (forex); debt (bonds, loans); equity (); or derivatives (options, futures, forwards).
The derivatives market is the financial market for derivatives - financial instruments like futures contracts or options - which are derived from other forms of assets. The market can be divided into two, that for exchange-traded derivatives and that for over-the-counter derivatives. The legal nature of these products is very different, as well ...
Equity basket derivatives are futures, options or swaps where the underlying is a non-index basket of shares. They have similar characteristics to equity index derivatives, but are always traded OTC (over the counter, i.e. between established institutional investors), [ dubious – discuss ] as the basket definition is not standardized in the ...
Fixed income derivatives include interest rate derivatives and credit derivatives. Often inflation derivatives are also included into this definition. There is a wide range of fixed income derivative products: options, swaps, futures contracts as well as forward contracts. The most widely traded kinds are: Credit default swaps; Interest rate swaps
In finance, a put or put option is a derivative instrument in financial markets that gives the holder (i.e. the purchaser of the put option) the right to sell an asset (the underlying), at a specified price (the strike), by (or on) a specified date (the expiry or maturity) to the writer (i.e. seller) of the put.
Derivatives, the value of which is determined by a contract and is derived by calculation from the performance of some other sort of underlying investment; these include forwards, futures, options, swaps, collateralized debt obligations, credit default swaps, and Tax Receivable Agreements