Business and Personal Finance Dictionary

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• DERIVATIVE PRODUCT
  
  A financial contract whose value depends on a risk factor, such as · the price of a bond, commodity, currency, share, etc. · a yield or rate of interest · an index of prices or yields · weather data, such as inches of rainful or heating-degree-days, · insurance data, such as claims paid for a disastrous earthquake or flood, etc. Also known as "derivative", for short.
  
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