Define the terms, or give short explanations.     -arbitrage -business risk -call -cash market/spot market -derivative/derivative market -derivative security

Q: Explain how to Adjust Trading Security Investments to Fair Value.

A:

Q: Active secondary markets

A: Secondary Market: Secondary market is the market where the securities are bought or sold without the…

Q: Describe about different types of investment derivatives.

A: Derivatives: Derivatives are some financial instruments which are meant for managing risk and…

Q: Financial market facilities the price discovery of the trade financial assets.  A. True  B. False

A: The term "financial markets" refers to any marketplace where securities are traded. Financial…

Q: How to trade in forex

A: Foreign exchange market is defined as the global decentralized or OTC market regarding the currency…

Q: Define the terms, or give short explanations.               -short sale/short selling…

A: A derivative is a financial contract whose value is derived from the underlying asset, which could…

Q: The market which deals with short term financial assets Select one: a. Commercial Market b. Primary…

A: Financial assets are a kind of liquid asset that generates its value from a contract that provides…

Q: Distinguish between margins in the securities markets and margins in the futures markets.

A:

Q: Explain accounting for derivatives.

A: Derivatives: Derivatives are some financial instruments which are meant for managing risk and…

Q: (i) Discuss the role of the three main categories of participants in derivative markets.…

A: Derivative markets are a part of financial market where the value of a contract is derived from its…

Q: Explain in detail the pricing applications of commodity derivatives.

A: Commodity Derivatives are the financial instruments which are traded on commodity as underlying…

Q: Financial Market for previously issued securities are bought sold in: a. Secondary market b. Primary…

A: Capital market is the market, where funds required for long term investment will be bought from the…

Q: Describe the main characteristics of the capital and money markets, with particular reference to the…

A: Financial markets are the markets where the buying and selling of financial instruments take place.…

Q: describe the major differences between futures and forwards.   b)describe delivery and settlement…

A: A derivative is a financial contract whose value is derived from the underlying asset, which could…

Q: Define the term ‘Capital Market’ and explain different forms of efficiencies by referring to the…

A: A market in which all relevant information of securities are reflected by its prices are called…

Q: Define Trading securities.

A: Investment: It refers to the process of using the currently held excess cash to earn profitable…

Q: Describe the uses of and accounting for derivatives

A: Accounting for derivatives: It is a method of recording a derivative holding of a company’s balance…

Q: Counter

A: 1) Money market & Capital market both are considered to be financial markets. Differences…

Q: Outline and discuss the role of derivatives in risk management with particular reference to the…

A: Financial instruments known as derivatives are those that are generated from other assets like…

Q: Why the financial instruments do often called derivatives?

A:

Q: a)explain current credit risk and potential credit risk.       b)describe the primary methods of…

A: The answers to the above question are given below :

Q: Commodities of broker-traders are measured at *

A: As per IAS 2 Inventories, this standard has some exceptions. One such exception is commodity…

Q: What is the difference (term of investment) between Money Market, Bond Market, Equity Market,…

A: Financial markets encompass any marketplace where securities are traded, such as the stock market,…

Q: Describe the Sale of Trading Security Investments.

A: Trading security investments: It refers to the trading of such investment that is done by the…

Q: How do fundamental securities differ from derivatives

A: Fundamental securities and derivatives are actively traded in financial markets. The differences…

Q: Identify the major derivative securities used to hedge against risk.

A: Answer: Usually, the primary aim of derivative securities trading is to hedge risk against the…

Q: The purpose of the hedger in futures trading is ()   A. Transfer price risk                  B.…

A: Hedging is a technique in which risks in underlying assets are managed or reduced by adopting…

Q: These types of services may be reported as off-balance sheet items except:  a. Intangible assets…

A: Off-balance sheet items are assets or liabilities that are not shown on a company's balance sheet…

Q: What are derivatives? How can derivatives be used to reduce risk? Can derivatives be used to…

A: Derivatives A derivative is a securities whose value is generated from or dependent on one or more…

Q: Differentiate primary markets from secondary markets and money markets from capital markets.

A: The Capital market contains two interdependent segments that are Primary market and Secondary…

Q: are broker markets and dealer markets? Distinguish between these

A: Broker market and dealer market are two different methods of trading in stock market.

Q: Explain Important Terms Used in the Market for CMOs and Derivative Securities?

A: CMO (Collateralised Mortgage Obligation): The obligation to repayment ensured by the mortgage to be…

Q: Which of the following people represents several insurance companies but owns the policy…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Differentiate between the following types of markets: physical asset vs. financial markets, spot vs.…

A: Note : As per the guidelines, only first three parts will be answered.

Q: How are derivatives recorded?

A: Derivatives:   Derivatives are some financial instruments which are meant for managing risk and…

Q: Trading in derivatives

A: Derivatives are the type of contracts that force the value of an underlying asset. These contracts…

Q: Critically explain the role and objectives of the main participants in the derivatives market.…

A: Derivative market is market which include the market for futures or options which are based on the…

Q: Analyze the use of FX Derivatives, Cost of Capital & Dynamic Risk Management Strategies?

A: FX derivatives (Foreign exchange derivative) is defined as the financial derivative, where its…

Q: explain The Effectiveness of Technical Analysis in Stock, Bond, Gold, Currency, and Commodity…

A: The technical analysis is that analysis in which the trend of the price of the stock, gold, bond and…

Q: Describe forwards, futures, and swaps.  What are the features of each type of derivative and how are…

A: A forward contract may be a personalized contract between 2 parties purchasing or offering an asset…

Q: Explain the Use of Derivatives to Hedge Portfolio Risk?

A: The contract whose value derives from the fluctuation of values of the underlying assets is called…