What are derivatives?, Accounting Basics

Derivative instrument is an asset which develops i.e. takes its origin from another asset.

The simplest form of derivative is a forward contract, "It is an agreement to buy or sell an asset at a particular future time for a particular price"Other forms of of derivatives have futures, options and swaps, etc.

 

Posted Date: 3/30/2013 5:43:55 AM | Location : United States







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