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16 February 2011 WHAT IS DERIVATIVE ?
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CA bhargava

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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
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Ugra Sen Singh

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Ugra Sen Singh (Expert)
17 February 2011 Dear , Solution given by Bhargava perfect
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