Credit (Risk) Analyst Question: Download Credit (Risk) Analyst PDF

Explain me what is a 'Derivative'?

Tweet Share WhatsApp

Answer:

A derivative is a security with a price that is dependent upon or derived from one or more underlying assets. The derivative itself is a contract between two or more parties based upon the asset or assets. Its value is determined by fluctuations in the underlying asset. The most common underlying assets include stocks, bonds, commodities, currencies, interest rates and market indexes.

Download Credit (Risk) Analyst PDF Read All 74 Credit (Risk) Analyst Questions
Previous QuestionNext Question
Tell me what is 'Interest Rate'?Explain me what are 'Profitability Ratios'?