Price of another investment in derivative contract
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mendel
Apprentice
Joined: 24 Nov 2007
Posts: 1
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 Posted: 09/02/08 - 06:16 Post subject: |
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| I have agreed to help a friend with a project of his. It has something to do with economics and there is something called derivative contracts. I have a question for you – the price of another investment in derivative contract. Do you have any idea what this is all about? I really don’t understand, and all I can do is grasp the meaning for sole words and when they are put in a sentence, I have no idea. What the complete phrase actually means. |
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glyn
Apprentice
Joined: 10 Mar 2006
Posts: 1
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| Posted: 09/17/08 - 03:43 Post subject: |
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| Derivative contracts are actually related to derivatives which are various kinds of financial instruments with variable change. The examples for derivatives are futures, forwards or swaps. This is a risk management and as such it can bring a lot of money to the investors. For example, I know that if you want to be in some kind of derivative contract with some kind of industry, for example car industry, then instead of investing into commodities instead of investing into companies trading in such commodities and instead of investing into a car company, you can invest into the material cars are made of. |
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vite
Apprentice
Joined: 29 Jan 2008
Posts: 1
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| Posted: 10/02/08 - 01:09 Post subject: |
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| As I know derivative is a kind of security and its price depends on or is derived from something called underlying assets. This sounds pretty awkward but when you are in that business, you will see that this is not complicated. The price of another investment in derivative contract is I suppose a bit lower than the price that was necessary for the first investment. This is a risky field and if you are not an expert, then you should search for some help, because that is the only way for you to see how this functions. Besides, you will have to hire someone to show you the ropes. |
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