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Category: Derivatives

Category: Derivatives

Underlying Asset ? understand in 5 minutes

10 January, 2026 1 Comment Derivatives 7:01 pm

Underlying Asset: The Asset on Which Derivatives are Based An underlying asset is the foundation of a derivative contract. Simply put, it’s the asset whose price movement determines the value of a derivative. If the…

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Derivatives: A Financial Contract Whose Value Depends on an Underlying Asset

9 January, 2026 1 Comment Derivatives 5:55 pm

Derivatives: A Financial Contract Whose Value Depends on an Underlying Asset A derivative is a financial contract whose value is based on—or derived from—another asset, known as the underlying asset. Derivatives are widely used in…

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