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Equity-linked derivative n.
A derivative whose value is based on the market price performance of a stock or stock index.
(1) These derivatives are largely used as equity price risk hedging instruments.
(2) Equity derivatives include stock options, index options, share purchase warrants, stock warrants, stock index futures, single stock futures, equity swaps and equity index swaps.
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Synonyms and variations
- Equity derivative
- Equity derivative contract
- Equity derivative instrument
- Equity derivative product
- Equity-linked derivative n.