In the financial world, there are many types of complex instruments called derivatives that derive their value from the value of an underlying asset. Consider the following simple derivative. A stock’s current price is £100 per share. You purchase a derivative whose value to you becomes known a month from now. Specifically, let S be the price of the stock in a month. If S is between £90 and £110, the derivative is wo

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Rate of Change

The relation between two quantities which displays how much greater one quantity is than another is called ratio.

Slope

The change in the vertical distances is known as the rise and the change in the horizontal distances is known as the run. So, the rise divided by run is nothing but a slope value. It is calculated with simple algebraic equations as: