This is MBA project report on “Awareness about the derivative and its comparison with equity” undertaken at Anand Rathi Financial services ltd. and submitted in the partial fulfillment of the requirement of the awards of Master of Business Administration. Anand Rathi is a leading full service investment bank founded in 1994 offering a wide range of financial services and wealth management solutions institutions,
corporations, high–net worth individuals and families.
According to dictionary, derivative means ‘something which is derived from another source’. Therefore, derivative is not primary, and hence not independent. In financial terms, derivative is a product whose value is derived from the value of one or more basic variables. These basic variable are called bases, which may be value of underlying asset, a reference rate etc. the underlying asset can be equity, foreign exchange, commodity or any asset.