Derivative Instrument

Derivative Instrument means:
a forward or futures contract, an option warrant, or a similar financial instrument whose price behavior is related to that of another security. Also known as derivatives. These are financial instruments whose values are linked to or depend on the value of a primary (underlying) asset, e.g. debt assets, liabilities and equity securities, commodities or currency. Former IRC (check if this IRC provision is current here) §988(c)( 1 )(B)(iii).

U.S. and other Developed Countries International Tax Meaning

The primary types of derivatives include forward contracts, futures, options and swaps.