Derivative instrument: Difference between revisions
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== | ==Other links== | ||
[http://www.treasurers.org/node/8599 "Masterclass: Derivatives" | [http://www.treasurers.org/node/8599 "Masterclass: Derivatives", The Treasurer, Dec 2012/Jan 2013] | ||
[http://www.treasurers.org/node/7849 Use and Misuse of Derivatives, Will Spinney, ACT 2012] | |||
Revision as of 10:46, 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
Other links
"Masterclass: Derivatives", The Treasurer, Dec 2012/Jan 2013
