Derivative: Difference between revisions
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1. ''Financial instruments.'' | |||
Abbreviation for derivative financial instrument. | |||
2. ''Maths''. | |||
A derivative function describes the rate of change of the underlying function, with respect to changes in one of the variables in the underlying function. | |||
*The first derivative describes the slope of the function curve at a given point on the curve. | |||
*The second derivative describes the rate of change of the slope. In other words the degree of curvature, at a given point. | |||
Most of the 'Greek letters' in options analysis are the first derivative of the option value, as the related value driver changes. | |||
== See also == | == See also == | ||
* [[Credit derivative]] | |||
* [[Crypto-derivative]] | |||
* [[Delta]] | |||
* [[Derivative instrument]] | * [[Derivative instrument]] | ||
* [[Differentiation]] | |||
* [[Embedded derivative]] | * [[Embedded derivative]] | ||
* [[Financial instrument]] | |||
* [[Fixing derivative]] | |||
* [[Greeks]] | * [[Greeks]] | ||
* [[ | * [[Interest rate derivative]] | ||
[[Category:Manage_risks]] | |||
[[Category:Financial_products_and_markets]] | |||
Latest revision as of 09:21, 31 August 2022
1. Financial instruments.
Abbreviation for derivative financial instrument.
2. Maths.
A derivative function describes the rate of change of the underlying function, with respect to changes in one of the variables in the underlying function.
- The first derivative describes the slope of the function curve at a given point on the curve.
- The second derivative describes the rate of change of the slope. In other words the degree of curvature, at a given point.
Most of the 'Greek letters' in options analysis are the first derivative of the option value, as the related value driver changes.
