A striped racer, also known as the California whipsnake, is a species of non-venomous snake native to the coast and foothills of California. It is a long, slender, and fast-moving snake, identified by its distinctive stripes running down the length of its body. They primarily feed on lizards and small rodents. The scientific name for this species is Masticophis lateralis.
Financial derivative
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(FINANCE) a financial instrument whose value is tied to something else; for example,
a [futures contract] (future)
an option
a swap
In each of these examples, the value of the derivative is related in some way to the price of something else. When the market price of (say) an ounce of gold goes from /oz to /oz, the return to the owner of 1 oz. of actual gold is 5%. But for the owner of a [call option] or a future, the return is much, much greater than that.
A derivative can be used to multiply risk AND potential profits to speculators; but it can be used for the [counterparty] to minimize risk by locking in prices, or by hedging against risk.
Financial derivative meaning & definition 1 of Financial derivative.
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