Derivative instrument: Difference between revisions
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imported>Doug Williamson m (Added 1 line space before see also) |
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* [[Commodity risk]] | * [[Commodity risk]] | ||
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*[http://www.treasurers.org/node/7849 Use and Misuse of Derivatives, Will Spinney, ACT 2012] | *[http://www.treasurers.org/node/7849 Use and Misuse of Derivatives, Will Spinney, ACT 2012] | ||
[[Category: | [[Category:Risk_frameworks]] | ||
Revision as of 19:32, 3 July 2014
A derivative instrument or contract is one whose value and other characteristics are derived from those of another asset or instrument (sometimes known as the Underlying Asset).
For example, a share option is a type of derivative contract, allowing the holder to buy shares at a certain predetermined strike price. The value of the share option derives from the current price of the related underlying share relative to the option strike price.
See also
- Commodity risk
- Embedded derivative
- ETD
- Fixing instrument
- Maturity
- Notional principal
- Option
- Strike price
- Tracker fund
- Underlying
- Underlying asset
- Underlying price
