What Are Derivative Instruments and How Are They Used

question 54

Essay

What are derivative instruments and how are they used?

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Definitions:

Graph

A visual representation of data or mathematical functions typically consisting of points on a coordinate plane.

Standard Form

A way of writing numbers, particularly very large or very small numbers, using powers of ten; also refers to a canonical form of equations in mathematics.

Vertex

A point where two or more curves, edges, or lines meet, often used to describe the corner point of a polygon or the peak or trough of a parabola.

Parabola

A symmetric curve formed by the intersection of a cone with a plane parallel to a straight line, generatrix, of the cone.