Derivative: Difference between revisions
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Revision as of 10:56, 2 May 2011
A derivative is a financial instrument whose value is based on or derived from the value of something else (an "underlying"). That underlying can be the value of another financial instrument, a commodity, an index, an asset, or a debt instrument. Examples of derivative financial instruments include futures, forward, swap, and option contracts; interest-rate caps; and fixed-rate loan commitments.[1]
Reference
- ↑ Baker, Theodore E. Christensen. "Chapter 11: Multinational Accounting: Foreign Current Transactions and Financial Instruments" In Advanced financial accounting . S.l.: Mcgraw Hill Higher Educat, 2011. 555.