Meaning of DERIVATIVE in English

DERIVATIVE

a derivative is any security whose value is derived from the price of some underlying asset.

Note: Future s and option s are two important types of derivative s.

eg1: an option to buy IBM stock is a derivative , the value of the IBM option depends on the price of IBM's stock.

eg2: a "weather derivative" depending on the situation of weather

Sean Woo's Finance, GIS and real estate English glossary.      Английский глоссарий по ГИС(Географическая информационная система) и недвижимости Sean Woo's Finance.