أنشئ حسابًا أو سجّل الدخول للانضمام إلى مجتمعك المهني.
i agree because you trade will not put any impact .
It need not be a value derived from an underlying entity or an asset. A derivative could be even for an agreed event. For example, whether, occurring of war etc.,History reveals such instances.
However, I agree that it has no intrinsic value other than a derived value.
Disagree as the price of derivative consist of two things.
1.Intrinsic Value
2.Time Value of Money
Rest is well explained by my friend Muhammad Afaq .
totally disagree all derivatives must have a pay off which is the intrensic value some times it would be zero when the exercise price equals to the stock or the asset price but not all the way the inrinsic value is zeroand at the case of the options it has also time value due to the early exercise of the american options
