Derivative (finance)/Definition: Difference between revisions

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

Revision as of 10:32, 21 October 2008 (view source) imported>Jitse Niesen (copied from Derivative/Definition)		Revision as of 02:23, 3 December 2009 (view source) imported>Nick Gardner No edit summary Newer edit →
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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.