Derivatives are contracts between two parties that specify conditions (especially the dates, resulting values and definitions of the underlying variables, the parties' contractual obligations, and the notional amount) … 查看更多內容

Derivatives are used for the following:
• Hedge or to mitigate risk in the underlying, by entering into a derivative contract whose value moves in the opposite direction to their underlying … 查看更多內容

Some of the salient economic functions of the derivative market include:
1. Prices in a structured derivative market not only replicate the discernment of the market participants about the future but also lead the prices of underlying to the professed future … 查看更多內容

Derivatives are often subject to the following criticisms; particularly since the Financial crisis of 2007–2008, the discipline of Risk management has developed … 查看更多內容

To give an idea of the size of the derivative market, The Economist has reported that as of June 2011, the over-the-counter (OTC) derivatives market amounted to approximately … 查看更多內容

In broad terms, there are two groups of derivative contracts, which are distinguished by the way they are traded in the market:
Over-the-counter derivatives
Over-the-counter (OTC) derivatives are contracts that … 查看更多內容

Market and arbitrage-free prices
Two common measures of value are:
• Market price, i.e. the price at which traders are willing to buy or sell the contract 查看更多內容