When explaining derivatives, I used the example of coconut affecting oil prices. However, I mistakenly said that when the price of coconut increases, the price of oil decreases. But that is incorrect. In reality, when the price of coconut increases, the price of oil also tends to increase. This happens because coconut is a primary raw material for producing oil. As the cost of the input (coconut) rises, the cost of production also goes up, leading to an increase in the price of the oil.
When explaining derivatives, I used the example of coconut affecting oil prices. However, I mistakenly said that when the price of coconut increases, the price of oil decreases. But that is incorrect. In reality, when the price of coconut increases, the price of oil also tends to increase.
This happens because coconut is a primary raw material for producing oil. As the cost of the input (coconut) rises, the cost of production also goes up, leading to an increase in the price of the oil.