Who signs the derivative contract?
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mortie
Apprentice
Joined: 18 Jan 2005
Posts: 1
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 Posted: 09/02/08 - 05:54 Post subject: |
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| I have read a few things about derivative contracts, but it is still not at all clearer to me. I mean, I still cannot understand what the asset in this contract is and who signs it. If there is anyone here willing to explain, I am looking forward to hear it. I will appreciate it. Thanks a lot |
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elia
Apprentice
Joined: 16 Apr 2005
Posts: 1
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| Posted: 09/17/08 - 03:06 Post subject: |
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| Hi there. I do not know why this kind of contract is confusing you that much. I mean, it is really not that difficult to understand. As every other contract it is signed by two or more parties, and the asset underlying this contract can be anything. It is also very important for you to know that this type of contract is actually a security. There are several kinds of derivate contracts – futures contract, swaps and options, forward contracts etc. |
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giraud
Apprentice
Joined: 04 Mar 2008
Posts: 1
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| Posted: 10/02/08 - 00:19 Post subject: |
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| And when he said everything, he meant everything! Do you know that some companies even make contracts on how many snowy days there will be in January in some location, or how many rainy days can be expected? So, the crucial thing is that these contracts depend on the value of the asset which is underlying the contract.,. This is a very interesting area of business and finance, and I think that there is enough of material on the net about it, and that you should read it. |
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