Definition from Investopedia A security whose price is dependent - TopicsExpress

Definition from Investopedia A security whose price is dependent upon or derived from one or more underlying assets. Merely a contract between two or more parties. Most derivatives are characterized by high leverage... There are even DERIVATIVES BASED ON WEATHER DATA, such as the amount of rain or the number of sunny days in a particular region. Why is the government subsidizing something so risky OR based on weather data??? investopedia/terms/d/derivative.asp

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