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A derivative can be defined as something which derives its value from an underlying product being a stock, currency, commodity or anything that carries a market price.

The market price of a product is subject to fluctuations due to various factors effecting its demand & supply thereby associating itself to various risk factors.

SO, derivative is a by-product of the core product which can be used to hedge, speculate & also undertake arbitrage activities.

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Lauretta Pollich

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Q: What do you mean by derivative?
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What does differentiation mean in mathematics?

Finding the derivative. The derivative is the measure of how a function changes as its input changes.


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If by "2aXaXa", you actually mean "2a3", then the derivative with respect to a is 6a2. On the other hand, if you actually mean "2a3X2", then it's derivative with respect to X would be 6a2X2(da/dx) + 4a3X. If "a" is simply a constant though, then it's derivative is 4a3X


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The derivative at any point in a curve is equal to the slope of the line tangent to the curve at that point. Doing it in terms of the actual expression of the curve, find the derivative of the curve, then plug the x-value of the point into the derivative to find the derivative at that point.


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