Category: Derivatives

Options

An option is a derivative¬†instrument which derives its value from another underlying asset. An option holder or buyer has a right to buy or sell the underlying asset from …

Warrants

A warrant is a derivative¬†instrument which gives the warrant holder a right to buy the underlying stock at a pre-determined strike price. A warrant holder can exercise the warrant …

Forward Contract

Forward Contracts: A forward contract is the easiest form of derivatives. Here, two parties enter into an agreement either to buy or sell something at a future date agreed …

Derivatives and its Types

Derivatives are instruments to manage financial risks. Since risk is an inherent part of any investment, financial markets devised derivatives as their own version of managing financial risk. Derivatives …