The major difference between future and option arises from the different obligations of buyers and sellers''. Explain

Q: What are the fundamental differnces between lessor and lessee?

A: Lessor is the person who has the ownership of the leased asset and grants on lease his asset for a…

Q: What document is the difference between a primary and a secondary market?

A: Primary Market: The primary market is where new securities are formed, while the secondary market is…

Q: What is the difference between contingent claims (options) and forward

A:

Q: ABC Bank offers Php Php 90,000 at the end of 2 years plus Php Php 224,000 at the end of 3 that the…

A: Fair market value(FMV) for an asset which generates several payments for investor is the present…

Q: What is the difference in Forward Contracts and Future Contracts

A:

Q: what is the fair value option? explain how the use of fair value option reflect application of the…

A: Fair Value option is that the board has taken an additional step of giving companies the option to…

Q: Describe the accounting for the fair value option.

A: The fair value option allows the business to record its assets and liabilities at their fair value.…

Q: What is the relation between the expected rate of return and the required rate of return as they…

A: In the world of finance in general and investments in particular we often look at a security’s…

Q: explain whether true or false : The interest rate parity does hold in realty

A: Interest rate parity is an releationship between spot exchange rate and the forward exchane rate…

Q: What is the fair value option? Briefly describe the controversyof applying the fair value option to…

A: Meaning of fair value option:

Q: Describe the difference between the forward price and the value of a forward contract?

A: First, let us define a forward contract. Forward contracts are agreements between two parties to buy…

Q: (Based on Appendix 9) Define purchase commitments. What is the advantage(s) of these agreements to…

A:

Q: When is a forward contract preferred over an option contract ?

A: Forward contract and Option contract Option contract gives the right to the holder to buy or sell…

Q: Is the “forward price” the same thing as the “value of the forward contract” Explain.

A: Derivative is defined as the contract, which are between the two or more parties, who has the value…

Q: What is an option? How does an Option differ from a forward or future contract?

A: Derivative Security: A derivative is financial security whose price and value are determined based…

Q: What’s the difference between primary markets and secondary markets?

A: In a primary market, securities are created for the first time for investors to purchase. New…

Q: For balance sheet purposes, can the fair value of a derivative in a loss position be netted against…

A: Financial accounting standards board (FASB): This is the organization which creates, develops, and…

Q: If an investor has unique needs and does not care about liquidity, which contract is right for them:…

A: future contract is the contract which gives the obligation to the holder to buy or sell the…

Mortgages

A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.

Mortgage

The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.