Derivatives: A Primer
Every semester in the course of our ethics related classroom discussions about global business and finance, the question of what derivative products are invariably arises. This is not an easy question to answer, but every global citizen should have some sort of comprehension of these essential, yet potentially dangerous instruments. Indeed, in terms of notional value, the derivatives market is at least 100 times bigger than traditional capital markets composing of things like stocks and bonds. Likewise, here at K.G.U. we are residents of Osaka, the birthplace of derivatives. This first futures contracts were traded here 300 years ago on the Dojima Rice Exchange.
I have searched for a long time to find the perfect concise explanation of derivatives for the undergraduate and [financial] layperson. The search continues, but a new multi-media presentation by the Chicago Mercantile Exchange, one of the largest and best know derivatives exchanges in the world, goes a long way in explaining the basics. Of course, as providers of a marketplace for these contracts, the presentation is--not surprisingly--pro-derivatives. Nonetheless, it is not a bad place to start.
Derivatives Made Simple
For those wishing to dig deeper, the Khan Academy has an excellent series of videos on derivatives as well.
Khan Academy on Derivatives
I have searched for a long time to find the perfect concise explanation of derivatives for the undergraduate and [financial] layperson. The search continues, but a new multi-media presentation by the Chicago Mercantile Exchange, one of the largest and best know derivatives exchanges in the world, goes a long way in explaining the basics. Of course, as providers of a marketplace for these contracts, the presentation is--not surprisingly--pro-derivatives. Nonetheless, it is not a bad place to start.
Derivatives Made Simple
For those wishing to dig deeper, the Khan Academy has an excellent series of videos on derivatives as well.
Khan Academy on Derivatives