Volume : IV, Issue : V, May - 2015

The Framework of Financial Derivative

Maneesh Arora

Abstract :

 Derivatives are financial instruments whose value depends upon the values of other more basic underlying variables or assets. The underlying asset could be a stock–index, a foreign currency, a commodity or an individual stock.  Forward contract is known as the most ancient form of derivatives. It goes on to take complex forms like futures, swaps, options and exotics.  A primary economic function of futures markets is to hedge, i.e. buy and sell futures contract to offset the risk of changing cash–market prices.  The purpose of this paper is to introduce to the readers regarding the oad framework of financial derivatives, their types and their objectives. There are great many risks associated with derivative management. Management development programs on financial derivatives have  not taken off as most B–School and corporate wait for bigger market volumes to spur demand in this area

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Article: Download PDF   DOI : 10.36106/ijsr  

Cite This Article:

Maneesh Arora The Framework of Financial Derivative International Journal of Scientific Research, Vol : 4, Issue : 5 May 2015

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