Derivative: Difference between revisions
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imported>Doug Williamson (Classify page.) |
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1. | 1. ''Financial instruments.'' | ||
Abbreviation for derivative financial instrument. | Abbreviation for derivative financial instrument. | ||
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* [[Differentiation]] | * [[Differentiation]] | ||
* [[Embedded derivative]] | * [[Embedded derivative]] | ||
* [[Financial instrument]] | |||
* [[Greeks]] | * [[Greeks]] | ||
* [[IRD]] | * [[IRD]] | ||
Revision as of 19:19, 17 July 2021
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.
