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They are called "derivative securitues" in the same fashion as "derivative work" is used in IP law. The value of a derivative security is derived from the value of something else.

Can the last politician to go out the revolving door please turn the lights off?
by Migeru (migeru at eurotrib dot com) on Wed Jul 4th, 2007 at 01:28:31 PM EST
[ Parent ]
Model-making of Finance is no longer my concern (Hurrah!  Hurrah!) so I'm not up on the lastest nonsense.  So time spent idly wandering through Wikipedia looking for the derivatives in Dervatives and not finding them has been puzzlement making.  Tho' my experience should have informed me that's the sort of thing Finance people do.

She believed in nothing; only her skepticism kept her from being an atheist. -- Jean-Paul Sartre
by ATinNM on Wed Jul 4th, 2007 at 01:58:39 PM EST
[ Parent ]
The "mathematical" derivatives of the "derivatives price function" are called the "greeks" in our jargon, because they're designated by greek letters: delta for the derivative against a share price, vega for the derivative against a share volatility, etc...

More here:

http://en.wikipedia.org/wiki/The_Greeks

by Laurent GUERBY on Thu Jul 5th, 2007 at 01:41:27 PM EST
[ Parent ]
Never mind that "vega" is not the name of a greek letter.

Can the last politician to go out the revolving door please turn the lights off?
by Migeru (migeru at eurotrib dot com) on Thu Jul 5th, 2007 at 05:47:13 PM EST
[ Parent ]
This is getting sillier by the moment.

Poor old δ.  It was sitting there, happy, minding its own business when

WHAM

Finance happened.

She believed in nothing; only her skepticism kept her from being an atheist. -- Jean-Paul Sartre

by ATinNM on Thu Jul 5th, 2007 at 07:46:43 PM EST
[ Parent ]
neither are volga, vanna, velta, zorg...
finance just ran out of greek letters, so they had to invent new ones

Pierre
by Pierre on Fri Jul 6th, 2007 at 03:57:31 AM EST
[ Parent ]

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