 |
| Derivatives... Say What ? |
Have had numerous questions and inquiries over the last few weeks concerning the topic of "derivatives".
Many folks have said they have tried hard to fathom just what a "derivative" actually is; but, the definitions, explanations, and arguments - pro&con - were way too dense and thoroughly impossible to understand.
You have asked if it is possible to reduce and simplify the discussion of "derivatives"? To 1) make the "derivatives" issue more understandable to the normal, reasonably intelligent, average CU person and 2) to provide a simpler, more familiar, clearer picture of what a "derivative" actually is - something on a more human scale?
OK, here goes:
1) The Issue - If you, a normal, reasonably intelligent, average CU person don't understand "derivatives"; you would be right to assume neither do "they"!! (... and "they" already have a track record to prove they don't get it!) .
2) A Clearer Picture - On a "human scale", here's what a "derivative" transaction looks like...
 |
| ... get the picture? (Plain vanilla, low risk) |
No comments:
Post a Comment