In finance, a derivative is a contract that derives its value from the performance of an underlying entity this underlying entity can be an asset, index, or interest rate, and is often simply called the underlying. Analysis of derivatives for the cfa program by don m chance the book is intended to provide the derivatives analysis portion of the cfa curriculum, and is intended to communicate a practical risk management approach to derivatives for the. Derivatives are broadly categorized by the relationship between the underlying asset and the derivative (such as forward, option, swap) the type of underlying asset (such as equity derivatives, foreign exchange derivatives, interest rate derivatives, commodity derivatives, or credit derivatives) the market in which they trade (such as exchange-traded or over-the-counter) and their pay-off profile.
In functional analysis, the functional derivative defines the derivative with respect to a function of a functional on a space of functions this is an extension of the directional derivative to an infinite dimensional vector space. Derivatives are also used in theorems even though this chapter is titled applications of derivatives, the following theorems will only serve as much application as any other mathematical theorem does in relation to the whole of mathematics the following theorems we will present are focused on.
Derivatives analysis can focus on two different types of analysis fundamental analysis and technical analysis this article will outline both types with particular focus on technical analysis.
Analysis of functions i increase, decrease, and concavity increasing increasing decreasing constant definitionlet f(x) be defined on an interval, and let x 1 and x 2 denote points in that interval (a) f is increasing on the interval if f(x 1. Derivative analysis derivative analyses are used to identify all flow regimes present in pressure transient data and to estimate values for parameters (eg k and s') that can be determined by the analysis of each of these flow regimes diagnostic analysis lines are matched to various regions of the derivative response, and various parameters are calculated based on the analysis type and line. The book is intended to provide the derivatives analysis portion of the cfa curriculum, and is intended to communicate a practical risk management approach to derivatives for the read more published on may 17, 2009. Derivative analysis is an invaluable tool for diagnosing of a number of distinct flow regimes examples of flow regimes that one may discern with derivative analysis include infinite-acting radial flow, wellbore storage, linear flow, bilinear flow, inter-porosity flow and boundaries. Derivative analysis is powerful diagnostic tool that enhances the interpretation of data from pumping tests features difficult to discern in drawdown data alone are often readily apparent through the application of the derivative procedure.
Derivative analysis derivative analyses are used to identify all flow regimes present in pressure transient data and to estimate values for parameters (eg k and s' ) that can be determined by the analysis of each of these flow regimes.
Then, the derivative of ′ is called the second derivative of and is written as ″ () what we have stated is that there may exist a second derivative, which is a derivative of a derivative we will further define second derivative at a to refer to a derivation of a derivative only at the value a. Interactive derivative analysis was the primary focus of this study an example is displayed in figure 2 figure 2a shows a set of reflectance spectra of soybean plants over the wavelength range of 400–800 nm (adams et al, 1995) , while figures 2b and 2c are second-order derivatives of the same soybean spectra at different band separations.