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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

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.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.

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.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson

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.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
References in periodicals archive ?
The vanishing of the first derivative of interphase Poisson's ratio (or stiffness, shear modulus, etc.) at the endpoints of the interval [[r.sub.f], [r.sub.i]] that was adopted in [14] seems to be a rather superficial and oversimplified consideration though it yielded realistic theoretical predictions for the elastic constants of the composite.
These differences are emphasized by PCA applied on the corresponding combined first derivative spectra.
The first derivative spectrum of DD solution treated with 0.05 M HCL reflected a decrease in its peak at 398 nm with appearance of well resolved degradation products peaks at 313 nm and 271 nm (Figure 4).
Dragomir [8] proved the following inequalities for the functions whose first derivative are convex functions
Clearly, the present method requires only two evaluation function and two of its first derivatives and it also free from second derivative.
It can also be seen from Table 2 that the second derivative in general is more favorable than the first derivative for the simultaneous determination of dopamine and ascorbic acid.
The first derivative of the models used in the study
Because the gradient slowly rises to an abrupt slant (increases) than slowly comes back to 0 (decreases), the derivative of the derivative shows where the peak of the first derivative is located, or where the center of the edge is.
Asignalat 257nm of first derivative spectrum was selected for quantification of salbutamol sulfate where no interference due to ketotifen fumarate was observed; similarly, a signal at 278 nm was selected for quantification of ketotifen fumarate, where salbutamol sulfate did not interfere with the estimation of ketotifen fumarate.
First Derivative Traders, (2) the Supreme Court produced a decision worthy of Janus, the two-faced Roman god whose image appears on Janus Capital's corporate logo.
Respondent, First Derivative Traders, was a class of plaintiffs
First Derivative Traders, concluding that the Supreme Court correctly interpreted Rule 10b-5 in its decision; however, the Court left open the question of who has "ultimate authority" leaving the district courts and circuit courts to determine the answer.