21 lines
1.2 KiB
Markdown
21 lines
1.2 KiB
Markdown
# Derivative
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A derivative is a type of financial contract whose value is dependent on an *underlying* asset, basket of assets, or a benchmark of other assets.
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Underlying for derivatives are most often [stocks](stock.md), [bonds](bond.md), [commodites](commodity.md), [currencies](currency.md), debt and market indexes. The value of the contract itself depend on changes in the prices of the underlying asset.
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A derivative is a type of [financial asset](financial-asset.md). Derivatives have no [use value](use-value.md). Their [fundamental value](fundamental-value.md) and demand is generated from their the demand of the underlying.
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Examples of derivatives products:
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* Futures
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* Forwards
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* Swaps
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* Options
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* Interest Rate Swaps
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* [Credit Default Swaps](cds.md)
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## References
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1. Wilmott, Paul. Paul Wilmott introduces quantitative finance. John Wiley & Sons, 2007.
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1. Grinold, Richard C., and Ronald N. Kahn. Active portfolio management: Quantitative theory and applications. Probus, 1995.
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1. Roche, Cullen O. 2011. ‘Understanding the Modern Monetary System’. http://ssrn.com/paper=1905625.
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1. Braun, Benjamin, and Daniela Gabor. 2019. ‘Central Banking, Shadow Banking, and Infrastructural Power’. https://doi.org/10.31235/osf.io/nf9ms. |