derivative

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Derivative

A financial contract whose value is based on, or "derived" from, a traditional security (such as a stock or bond), an asset (such as a commodity), or a market index.

Derivative Security

Futures, forwards, options, and other securities except for regular stocks and bonds. The value of nearly all derivatives are based on an underlying asset, whether that is a stock, bond, currency, index, or something else entirely. Derivative securities may be traded on an exchange or over-the-counter. Derivatives are often traded as speculative investments or to reduce the risk of one's other positions. Prominent derivative exchanges include the Chicago Mercantile Exchange and Euronext LIFFE.

derivative

An asset that derives its value from another asset. For example, a call option on the stock of Coca-Cola is a derivative security that obtains value from the shares of Coca-Cola that can be purchased with the call option. Call options, put options, convertible bonds, futures contracts, and convertible preferred stock are examples of derivatives. A derivative can be either a risky or low-risk investment, depending upon the type of derivative and how it is used. See also underlying asset.

Derivative.

Derivatives are financial products, such as futures contracts, options, and mortgage-backed securities. Most of derivatives' value is based on the value of an underlying security, commodity, or other financial instrument.

For example, the changing value of a crude oil futures contract depends primarily on the upward or downward movement of oil prices.

An equity option's value is determined by the relationship between its strike price and the value of the underlying stock, the time until expiration, and the stock's volatility.

Certain investors, called hedgers, are interested in the underlying instrument. For example, a baking company might buy wheat futures to help estimate the cost of producing its bread in the months to come.

Other investors, called speculators, are concerned with the profit to be made by buying and selling the contract at the most opportune time. Listed derivatives are traded on organized exchanges or markets. Other derivatives are traded over-the-counter (OTC) and in private transactions.

derivative

a financial instrument such as an OPTION or SWAP whose value is derived from some other financial asset (for example, a STOCK or SHARE) or indices (for example, a price index for a commodity such as cocoa). Derivatives are traded on the FORWARD MARKETS and are used by businesses and dealers to ‘hedge’ against future movements in share, commodity etc. prices and by speculators seeking to secure windfall profits. See LONDON INTERNATIONAL FINANCIAL FUTURES EXCHANGE (LIFFE), EUREX.

derivative

a financial instrument such as an OPTION or SWAP the value of which is derived from some other financial asset (for example, a STOCK or SHARE) or indices (for example, a price index for a commodity such as cocoa). Derivatives are traded on the FUTURES MARKETS and are used by businesses and dealers to ‘hedge’ against future movements in share, commodity, etc., prices and by speculators seeking to secure windfall profits. See LONDON INTERNATIONAL FINANCIAL FUTURES EXCHANGE (LIFFE), STOCK EXCHANGE.
References in periodicals archive ?
for all t [member of] l, then there exists a unique continuously differentiable function [v.sub.0] : I [right arrow] X such that [v'.sub.0](t)+p(t)v0(t)+q(t) = 0 for all t [member of] l and
Due to the strong coupling between the rigid body states and the flexible modes in the AHV model ((1), (2), (3), (4), (5), (6), and (7)), here the dynamic characteristics of strong nonlinearity and strong coupling in the original model are regarded as completely unknown continuous differentiable functions ((16) and (44)) by referring to the method of [25].
In general, the fractional derivative of order w of any differentiable function f(l) is defined in the form [13]:
Taking into account that ([theta] - [eta])/[psi] is an infinitely differentiable function with compact support and that F(([eta](1 - [phi]))/[psi]) [member of] [L.sub.[??]]([R.sup.d]), we get by Theorem 2.2 from (3.2) and (3.6) for each g [member of] [B.sup.p.sub.[sigma]]([R.sup.d]) the estimate
Stein (1973, 1981) used the property of the exponential function inherent in Normal distributions and integration by parts to prove the following result: if the random pair (X, Y) has a bivariate Normal distribution and h is a differentiable function satisfying the condition that
Bi-quaternion of differentiable function of x=([x.sub.1],[x.sub.2],[x.sub.3]) is defined as [22]:
In the case of a differentiable function F(y, z), we use subscript letters to denote derivatives [F.sub.y](y, z) = [partial derivative]F/[partial derivative]y, [F.sub.yz] (y,z) = [[partial derivative].sup.2]F/[partial derivative]y [partial derivative]z, [F.sub.yy](y,z) = [[partial derivative].sup.2]F/[partial derivative]y[partial derivative]z, each evaluated at (y, z).
Let f(x) be a real-valued differentiable function defined for x [element of] [R.sup.n].
For mathematical convenience, f(x) must be a continuous and differentiable function.
Coordinate geometry provides a useful way of representing functions on real numbers: calibrated horizontal and vertical axes have their zero-mark where they meet, the origin; then a line, possibly neither straight nor smooth nor uninterrupted, represents a function f according to familiar conventions.(5) Using these conventions, a continuous function can only be represented by an uninterrupted or gapless line, a line drawn without lifting the nib off the paper, so to speak; and a differentiable function can only be represented by a line which is not only uninterrupted but also smooth, without sharp bends or sudden changes of direction.
The basis of the proof was Sard's theorem on the set of critical values of a differentiable function, of which I learned in the late sixties in a first encounter with Steve Smale, whose path had remained separate from mine during the period of campus turbulence that began in September 1964.
Following the notation of Riley [1975] and Spence [1974], each applicant has an underlying ability level, n, which falls within the interval [n(0), n(1)] and the proportion of the applicant pool with ability less than n is assumed to be a differentiable function F(n).