Derivative instrument and Ltd: Difference between pages

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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).
#''UK.'' A corporation that is limited by shares.
 
#Similar arrangements in other countries.
Derivative instruments are widely used by non-financial corporates for hedging purposes.
 
 
<span style="color:#4B0082">'''Example'''</span>
 
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 ==
== See also ==
* [[CertFMM]]
* [[AG]]
* [[Commodity risk]]
* [[Company]]
* [[CP]]
* [[GmbH]]
* [[Embedded derivative]]
* [[Plc]]
* [[ETD]]
* [[SA]]
* [[FC]]
* [[Limited company]]
* [[Fixing instrument]]
* [[Hedge fund]]
* [[Hedging]]
* [[IR]]
* [[Maturity]]
* [[Notional principal]]
* [[Option]]
* [[Outright]]
* [[Strike price]]
* [[Tracker fund]]
* [[Transfer]]
* [[Underlying]]
* [[Underlying asset]]
* [[Underlying price]]
* [[XVA]]
 
 
===Other links===
*[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]
 
[[Category:Risk_frameworks]]

Revision as of 10:11, 20 April 2016

  1. UK. A corporation that is limited by shares.
  2. Similar arrangements in other countries.


See also