Interested to Buy Any Domain ? << Click Here >> for more details...
Answer Posted / rajan sevak
Forwards: A forward contract is a customized contract
between two entities, where settlement takes place on a
specific date in the future at today's pre-agreed price.
Futures: A futures contract is an agreement between two
parties to buy or sell an asset at a certain time in the
future at a certain price. Futures contracts are special
types of forward contracts in the sense that the former are
standardized exchange-traded contracts.
Options: Options are of two types - calls and puts. Calls
give the buyer the right but not the obligation to buy a
given quantity of the underlying asset, at a given price on
or before a given future date. Puts give the buyer the
right, but not the obligation to sell a given quantity of
the underlying asset at a given price on or before a given date.
Swaps: Swaps are private agreements between two parties to
exchange cash flows in the future according to a prearranged
formula. They can be regarded as portfolios of forward
contracts. The two commonly used swaps are:
Interest rate swaps: These entail swapping only the
interest related cash flows between the parties in the same
currency.
Currency swaps: These entail swapping both principal and
interest between the parties, with the cash flows in one
direction being in a different currency than those in the
opposite direction.
Warrants: Options generally have lives of upto one year, the
majority of options traded on options exchanges having a
maximum maturity of nine months. Longer-dated options are
called warrants and are generally traded over-the-counter.
LEAPS: The acronym LEAPS means Long-Term Equity Anticipation
Securities. These are options having a maturity of upto
three years.
Baskets: Basket options are options on portfolios of
underlying assets. The underlying asset is usually a moving
average or a basket of assets. Equity index options are a
form of basket options.
Swaptions: Swaptions are options to buy or sell a swap that
will become operative at the expiry of the options. Thus a
swaption is an option on a forward swap. Rather than have
calls and puts, the swaptions market has receiver swaptions
and payer swaptions. A receiver swaption is an option to
receive fixed and pay floating. A payer swaption is an
option to pay fixed and receive floating.
| Is This Answer Correct ? | 15 Yes | 2 No |
Post New Answer View All Answers
Paid office electricity charges Rs 15000/- and Ram partners residence electricity charges 1250 thr andhra bank cheque
Dear sir i had been called for ntpc interview and gd next month..please guide me for it!
is it possible that on dealer of work contract can opt composition and non-composition both scheme in dvat?
EXPAND______________ICC
EXPAND___________IMA
1.What are the basic accounting Standards ?? 2.What is the main importance of Bank Reconcilation Statement? 3. What is Form 407 in Vat ??
In sales what rule applicable
If DEBT/EQUITY ratio 2:1, is to good or bad for a company? how...??? can u explain it...???
How to Calculate PF with interest or without interest.
EXPAND___________NAC
hdn Systems Pvt. Ltd., manufactures a consumer durable which passes through two processes M and N. From the following details prepare necessary process ledger accounts bringing out clearly the cost of the product at each stage. Process ‘M’ Process ‘N’ Materials (Rs.) 30,000 3,000 Labour (Rs.) 10,000 12,000 Overheads (Rs.) 7,000 8,600 Input (units) 20,000 17,500 Normal loss 10% 4% Scrap value of loss (per unit) Re. 1.00 Rs. 2.00 There is no opening or closing W-I-P or stock at processes. Final output from the process ‘N’ was 17,000 units
What is dematerialisation and its benefits?
Short Answer on ___________fluctuating capital
What are the objectives of accounting
Which entry we pass self entry like cash withdraw for ourself
