Followers

Sunday, 7 April 2019

Financial derivatives

In Finance , Derivative is a contract whose value depends on the underlying asset performance. The value of underlying asset depends up on the market  conditions.   Underlying asset may be  index , interest rate, Commodity, Currency.

     Derivatives help to reduce or eliminate the risk. Derivatives are used in risk management.

Following are different types of derivatives:-
Forwards
Futures
Options
Swaps

No comments: