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Preferred term

financial derivatives  

Definition

  • A financial derivative is a financial instrument whose value and profits depend on the value of some more basic underlying financial instrument. For example, a stock option is a financial derivative because the value and payoffs of a stock option depend on the value and price movements of the underlying stock. [Source: Encyclopedia of Business Ethics and Society; Financial Derivatives]

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https://concepts.sagepub.com/social-science/concept/financial_derivatives

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