CFD is a derivative contract. Yes or No

Q: A call option holder has an obligation to sell the asset. True or false?

A: A call option is an instrument which provides its holder an option to buy an underlying asset on a…

Q: one key difference between option contracts aND FUTURE CONTRACTS IS THAT IN AN OPTION CONTRACT, THE…

A: Option Contract-An options contract is a contract between two parties to facilitate a potential…

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

A:

Q: which are the terms and conditions for OPTION CONTRACT WITH SIMULTANEOUS TITLE CLOSING?

A: The option contract is an obligation to purchase the property in the future at a fixed predefined…

Q: Determine whether the statement is legally correct (true) or not (false).  Even where the contract…

A: The business can be run by the individual in the form of sole proprietorship, or it can be run as a…

Q: What is the effect of the fulfillment of the condition in a conditional obligation? resolutory…

A: A conditional obligation would seem to be one that is contingent on the occurrence of an unknown…

Q: What are the examples of Derivative Instruments? Define each examples and differentiate its nature…

A: Derivative is defined as the financial security along with the value, which used to be reliant or…

Q: Explain the difference between the forward price and the value of a forward contract. Give an…

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

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

A:

Q: the effect of the doctrine of privity of contract is that

A: The doctrine of privity of contract states that the contract law would not impose any obligation and…

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: The seller of a put option is not necessarily the seller of the underlying asset. True False

A: The options can be sold even though the underlying assets are not held by the option sellers.

Q: what is fixed-price contract, and what are the benfit of chosing it

A: A contract where the price is fixed as negotiated by the parties is known as a Fixed Price Contract.…

Q: Does a lessee have an option not to separate lease and non lease components?

A: Lease: A lease or a lease agreement is a binding contract between two parties that dictates…

Q: Give example/illustration of reciprocal obligation. Explain why it is a reciprocal obligation.

A: A reciprocal obligation, also known as a reciprocal agreement, is a legal term for a…

Q: Which of the following is true about forward contract expiration?  a.A deliverable forward contract…

A: On the date of expiration of a forward contract, settlement can be made on delivery basis or on cash…

Q: How contract is discharged by subsequent impossibility?

A: Discharge of agreement or contract implies the end of the authoritative connection between the…

Q: Factual errors can occur in two ways: unilaterally or bilaterally. What are the implications of both…

A: pleas see the next step for solution

Q: In Swap contract one counter party has an obligation but not right, while in an option contract the…

A: Swap is a contract between two parties to exchange cash flows of a contract to each other. The leg…

Q: What are three similarities of a future contract and a forward contract?

A: Forwards are the contract made for the private placements while futures are traded under stock…

Q: in a conditional

A: A conditional obligation would seem to be one that is contingent on the occurrence of an unknown…

Q: The major difference between future and option arises from the different obligations of buyers and…

A: The option and future are used to hedge investment as well as to make money and it represents the…

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: Example of someone use a derivative

A: Derivatives: These are the financial instrument, which derives their value from the price and the…

Q: Is leasing a zero sum game in the sense that any gain to the lessee is a cost to the lessor? If…

A: The question is based on the concept of leasing.

Q: A contract to sell is the same as a conditional contract of sale. Do you agree? Explain your answer.

A: A contract to sell is a contract that is legally binding and involves the purchase of products or…

Q: As a rule, when the substitute obligation is lost prior to substitution, the obligation becomes a…

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

Q: What is the relationship between provisions, onerous contracts, contingent liabilities and other…

A: The book in which the company records all its transactions initially is termed as journal book. From…

Q: The contract in which the buyer has the right but not an obligation to buy or sell and underlying…

A: Option contract refers to the contract in which buyer or seller is having right but not an…

Q: swer True or False to the following  Explain your answer. Question 1 “The interest parity condition…

A: Concept of Interest Parity condition Interest Parity condition cover the of currency price and…

Q: What is an Option Contract?

A: An Option contract is an agreement between two parties to buy or sell an underlying asset, at a…

Q: . Which of the following may not be equal to the contract rate of interest? a. stated rate b.…

A: Contract rate of interest is the defined rate of interest on bonds, notes or loan.

Q: Discuss how Unilateral contract suits insurance than commutative contracts

A: An insurance contract is a kind of legal document that lays down the agreement terms between the…

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: The following obligations are immediately demandable, EXCEPT:     a pure obligation  obligation with…

A: There are obligation to be paid immediately but there are some conditional liabilities they occur…

Q: In which of the following contracts BOTH parties have an OBLIGATION to exercise the contract?   a)…

A: In finance, Obligation refers to the liability or mandatory action for either acquiring an asset or…

Q: A contract requiring a specified future monetary payment at a specified future point in time in…

A: A derivative is a complicated financial security that is agreed upon by two or more parties. Traders…