Derivative instrument: Difference between revisions
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imported>Doug Williamson m (Rationalisation of other links to current style) |
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==Other links== | ==Other links== | ||
*[http://www.treasurers.org/node/8599 Masterclass: Derivatives, The Treasurer, December 2012 | *[http://www.treasurers.org/node/8599 Masterclass: Derivatives, The Treasurer, December 2012] | ||
*[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:Managing_Risk]] | |||
Revision as of 05:57, 4 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
