Derivative and Derivative instrument: Difference between pages
From ACT Wiki
(Difference between pages)
imported>Doug Williamson (Layout.) |
imported>Doug Williamson m (Rationalisation of other links to current style) |
||
| Line 1: | Line 1: | ||
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]] | |||
* [[Fixing instrument]] | |||
* [[Maturity]] | |||
* [[Notional principal]] | |||
* [[Option]] | |||
* [[Strike price]] | |||
* [[Tracker fund]] | |||
* [[Underlying]] | |||
* [[Underlying asset]] | |||
* [[Underlying price]] | |||
==Other links== | |||
*[http://www.treasurers.org/node/8599 Masterclass: Derivatives, The Treasurer, December 2012/January 2013] | |||
* | *[http://www.treasurers.org/node/7849 Use and Misuse of Derivatives, Will Spinney, ACT 2012] | ||
Revision as of 14:54, 2 October 2013
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
- Fixing instrument
- Maturity
- Notional principal
- Option
- Strike price
- Tracker fund
- Underlying
- Underlying asset
- Underlying price
