Subject category:
Finance, Accounting and Control
Published by:
Darden Business Publishing
Version: 06.1999
Length: 9 pages
Data source: Generalised experience
Topics:
Option valuation; Monte Carlo simulation
Abstract
Financial derivatives are contracts whose value is derived from the value of some other underlying asset, such as a share of common stock, a commodity (like coffee, oil, or wheat), or a bond. Each derivative has its own special features and provisions, and each is used for a special financial purpose. This note describes the basic elements and pricing of financial derivatives.
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Abstract
Financial derivatives are contracts whose value is derived from the value of some other underlying asset, such as a share of common stock, a commodity (like coffee, oil, or wheat), or a bond. Each derivative has its own special features and provisions, and each is used for a special financial purpose. This note describes the basic elements and pricing of financial derivatives.