Derivative (finance)/Definition: Difference between revisions

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Derivative (finance) [r]: An asset whose value depends upon the expected value of another asset.

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	~~In finance, an~~ asset whose ~~agreed~~ value depends upon the expected value of another asset. A typical example is a futures contract which is an undertaking to buy a stipulated asset at a stipulated price at a stipulated future time. Other examples are options and futures contracts. Some derivatives can be used for ''hedging'' against risk.		An asset whose value depends upon the expected value of another asset.