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Derivative financial instruments and nonprofit health care providers

Louis J Stewart1, Vincent Owhoso

  • 1School of Business, Public Administration, and Information Sciences at Long Island University in Brooklyn, NY, USA.

Related Concept Videos

Derivatives of Logarithmic Functions01:22

Derivatives of Logarithmic Functions

Logarithmic and Exponential RelationshipA logarithmic function is the inverse of an exponential function. If y = logb x then, it can be rewritten as by = x. This relationship allows for implicit differentiation, making logarithmic functions useful in calculus. Logarithmic scales are widely used to represent data that span multiple orders of magnitude, such as earthquake magnitudes (Richter scale) and sound intensity (decibels).Differentiation of Logarithmic FunctionsTo differentiate y = logb x,...
Derivatives01:16

Derivatives

DerivativesThe concept of instantaneous rate of change is fundamental in both mathematics and physics, particularly in describing how a moving object alters its position with respect to time. This rate is captured mathematically through the derivative of a function. The derivative at a point represents the slope of the tangent line to the curve of the function at that point and quantifies how the function’s output changes per infinitesimal change in input.Derivative of the Square Root...
First Derivative Test: Problem Solving01:25

First Derivative Test: Problem Solving

Imagine an asset price that crashes to a low point, rebounds sharply as bargain-hunters step in, and then gradually declines. Such behavior can be modeled with a smooth function whose turning points represent locally overvalued and undervalued regions. A convenient example that captures rebound followed by decay is:The high and low points of this curve are identified using the first derivative test, which determines where the function changes from increasing to decreasing or vice versa. To...
The Derivative as a Function01:26

The Derivative as a Function

A derivative quantifies how a function changes in response to variations in its input. It provides a localized rate of change, representing the slope of the tangent line to the function at any given point. When this process is applied systematically across the entire domain of the function, it yields a new function—the derivative function—which encodes the rate of change at every point. This concept is central to calculus and essential for understanding the behavior of dynamic systems in both...
Higher Derivatives01:31

Higher Derivatives

In calculus, higher-order derivatives extend the idea of differentiation beyond the first derivative to capture successive rates of change. These derivatives provide detailed information about the behavior of functions and have important applications in both mathematics and physics. To illustrate these concepts, consider the example function\begin{equation*}f(x) = x^3 - x\end{equation*}which serves as a useful case study for exploring higher derivatives.The first derivative represents the slope...
Derivatives of Simple Functions01:28

Derivatives of Simple Functions

Derivatives quantify the rate of change of a function and can be interpreted geometrically as the slope of a straight line or the slope of a tangent line to a curve at a given point. In the context of a roller coaster, the derivative of the function describing the track’s horizontal position provides a mathematical description of how steep the path is at any location along the ride.Constant and Linear PathsA horizontal segment of a roller coaster can be modeled by a constant function, f(x) = c,...