Are all futures derivatives?

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Guest60 0 Comments

I know that the price of a derivative depends on the price of an other product but would you say that because of that, all futures are derivatives?

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score 0 · Answer 1 · 2013-05-07T23:04:55+00:00

Yes, all futures are derivatives since the value of of a future is based on the value of the underlying security which is the definition of a derivative. For example, the price of a contract that will allow you to sell 2 tonnes of gold in 2 months time is based on the price of gold as at this moment so yea they are all derivatives.