Derivative instrument: Difference between revisions

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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 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]]
[[Category:Managing_Risk]]

Revision as of 14:43, 16 April 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


Other links