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

Q: Describe about different types of investment derivatives.

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

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: Define the term trading debt investments.

A: Investment is an asset or an item purchased today in the hope that it will generate income in the…

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: Distinguish between the debt and equity securities markets

A: The debt securities market is a market that trades in debt that must be returned to investors, along…

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: Discuss the difference between debt securities market and equity securities market.

A: The Debt securities market refers to the market which trades in debt that has to be repaid to the…

Q: What are the similarities and differences in equity valuation and bond valuation?

A: Bonds: Bonds are a debt instrument on which interest is paid. They can be issued at a discount/par…

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: 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: 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: 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: Which of the following are all traditional credit risk enhancement techniques? Group of answer…

A: credit risk mitigation technique is institutional collatoral agreement used to reduced credit risk.

Q: Which of the following deals with instrument relating to long-term debt and equity? Select one: A.…

A: Long term debt and equity are investments made for the long term in either the debt of a company via…

Q: Clearly explain the difference between debt securities market and equity securities market

A: Equity securities market is the place where equities of corporates are traded, i.e. purchased and…

Q: type of liabilities: Trade and other payables  defination ?…

A: Current liabilities In accounting, current liabilities are often classified as all liabilities of…

Q: What are advantages and disadvantages of using derivatives? Discuss. Provide examples.

A: “Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only…

Q: A) What is the difference between trading securities and available for sale securities? B) Describe…

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

Q: Define Arbitrage Pricing Theory (APT)

A: Arbitrage is the method of making profit from the temporary change in the cost of shares by buying…