General Seminar
December 14, 2008, Tuesday, 15:40, Institute of Applied Mathematics, Room S209,
Sumru G. Altuğ
Koç University
Lectures In finance
Derivative Instruments are assets such as bonds, options, forward contacts, futures, swaps. The price of a derivative instrument is determined ib relation to the price or value of the underlying asset. As examples, a short-term bond may be the underlying asset for a bond with longer maturity, the stock price is the underlying asset for an option, and the stock market index is the underlying asset for index features. The aim of hedging is to reduce uncertainty and risk. It is often possible to remove uncertainty entirely and sometimes risk too.