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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