The value of a derivative contract depends on, or is derived from, the price of another financial asset.
Since there are no active market transactions in our exposures, we generally use vendor - developed and proprietary models, depending on the type and structure of the contract, to estimate the fair
value of our derivative contracts.
Not exact matches
Basically,
derivatives are financial
contracts with
values that are derived from the behavior
of something else — interest rates, stock indexes, mortgages, commodities, or even the weather.
Derivatives are
contracts between counterparties that derive their
value from the performance
of an underlying asset, index, or entity.
Crypto
Derivatives are
contracts between two or more parties and based upon the
value of cryptocurrency.
In finance, a
derivative is a
contract that derives its
value from the performance
of an underlying asset or other entity (such as an index or interest rate).
I'm comfortable with the use
of derivative contracts, which derive their
value from stocks, to enhance income
The
value of a
derivative depends on the
value of its underlying asset, thus by predicting the future price
of the asset, the future price
of the
derivative contract can be judged and traded on.
There are three main kinds
of derivatives on the commodities market —
contracts made between two or more parties who agree on the
value of the underlying asset: futures and forwards, options and OTC products.
Derivatives Risk:
Derivatives are instruments, such as futures and foreign exchange forward
contracts, whose
value is derived from that
of other assets, rates or indices.
Derivatives values are affected by the performance
of the underlying asset or as mentioned
contract.
During 2007, the
value of the Company's credit
derivative contracts were affected predominantly by changes in credit spreads
of the underlying reference obligations» collateral and ratings downgrades
of securities backing collateralized debt obligations.
Problem 2a is how to deal with the irony that if a company were to enter into a
derivative contract reduce a source
of risk — i.e., reducing the volatility
of future enterprise
value — then marking a
derivative to market through net income could be expected to increase the volatility
of future net income.
In the absence
of an actual financial market, we
value these insured credit
derivatives at the estimated amount that financial guaranty insurers with comparable credit ratings as us would require to assume these
contracts.
See «Note 6:
Derivative Instruments» for further detail on the model and inputs used to estimate the fair
value of these
contracts.
A fixed - income
derivative is a
contract whose
value derives from the
value of a fixed - income security.
Short ProShares ETFs are non-diversified and should lose
value when their market indexes or benchmarks rise — a result that is opposite from traditional ETFs — and they entail certain risks including risk associated with the use
of derivatives (swap agreements, futures
contracts and similar instruments), imperfect benchmark correlation, leverage and market price variance, all
of which can increase volatility and decrease performance.
Derivatives are
contracts whose
value is «derived» from some other investment, such as a commodity, stock, bond, or currency, or an index
of such investments.
Derivative: A
contract whose
value is based on the performance
of an underlying financial asset, index, or other investment.
When you insure long - term risks (such as mortality) or issue financial
derivatives (such as interest rate swaps or
contracts on the future
value of the S&P 500) the risks are not easy to understand.
A
derivative is a financial
contract linked to the future
value or status
of the underlying to which it refers (e.g. the development
of interest rates or
of a currency
value).
Furthermore, significant changes in the
value of a cryptocurrency also preclude consumer loans on the blockchain, prediction markets,
derivatives and long - term smart
contracts that require price stability.
Bitcoin
derivatives are assets that are sold as
contracts that derive their
value from the performance
of the digital currency.
That would include three principal areas: «cryptocurrency futures — a
derivative contract in which each party agrees to exchange cryptocurrency at a future date and at a price agreed by both parties; cryptocurrency
contracts for differences (CFDs)-- a cash - settled
derivative contract in which the parties to the
contract seek to secure a profit or avoid a loss by agreeing to exchange the difference in price between the
value of the cryptocurrency CFD
contract at its outset and at its termination; [and] cryptocurrency options — a
contract which grants the beneficiary the right to acquire or dispose
of cryptocurrencies.