Accounts_sfm
This query is : Resolved
SUBHAJIT BANIK
(Querist)
16 February 2011
WHAT IS DERIVATIVE ?
CA bhargava
(Expert)
17 February 2011
Derivative is an instrument whose value derives from the underlying asset.
Examples...options, futures.
options:there are two types ..1.CAll option,
2. Put Option
Option means it gives a right to the holder either to purchase or to sell the shares at the price mentioned on the agreement.
Futures means it is not aright unlike options , it is the duty.of the holder to sell or purchase at the predetermined price.
Ex.Currency futures, Commodity Futures.. Etc
Examples...options, futures.
options:there are two types ..1.CAll option,
2. Put Option
Option means it gives a right to the holder either to purchase or to sell the shares at the price mentioned on the agreement.
Futures means it is not aright unlike options , it is the duty.of the holder to sell or purchase at the predetermined price.
Ex.Currency futures, Commodity Futures.. Etc
Ugra Sen Singh
(Expert)
17 February 2011
Dear , Solution given by Bhargava perfect
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