Question

What do you mean by Derivative?​

Answer 1

Answer:

A derivative is a contract between two parties which derives its value/price from an underlying asset. The most common types of derivatives are futures, options, forwards and swaps.

Answer 2

Step-by-step explanation:

Definition: A derivative is a contract between two parties which derives its value/price from an underlying asset. The most common types of derivatives are futures, options, forwards and swaps. ... Generally stocks, bonds, currency, commodities and interest rates form the underlying asset.