Define derivarive - Study guides, Class notes & Summaries

FINC306 Exam Questions With 100% Correct Answers. Define Derivarive - answera financial instrument that has a value determined by the value of something else (underlying) Examples of Derivatives - answerStocks, bonds, commodities, currencies, interest rates Types of Derivatives - answerForwards, futures, options, swaps Why use derivatives - answerRisk management Speculation Reduce transaction costs Regulatory Arbitrage Difference between Market value and Notional value - answermarket v...

Define Derivarive a financial instrument that has a value determined by the value of something else (underlying) Examples of Derivatives Stocks, bonds, commodities, currencies, interest rates Types of Derivatives Forwards, futures, options, swaps Why use derivatives Risk management Speculation Reduce transaction costs Regulatory Arbitrage

Define Derivarive Ans- a financial instrument that has a value determined by the value of something else (underlying) Examples of Derivatives Ans- Stocks, bonds, commodities, currencies, interest rates Types of Derivatives Ans- Forwards, futures, options, swaps Why use derivatives Ans- Risk management Speculation Reduce transaction costs Regulatory Arbitrage Difference between Market value and Notional value Ans- market value is the sum of the market value of all the claims that co...

FINC306 Exam With Questions And Complete Answers ...

Define Derivarive a financial instrument that has a value determined by the value of something else (underlying) Examples of Derivatives Stocks, bonds, commodities, currencies, interest rates Types of Derivatives Forwards, futures, options, swaps Why use derivatives Risk management Speculation Reduce transaction costs Regulatory Arbitrage Difference between Market value and Notional value market value is the sum of the market value of all the claims that could be traded