Is Bitcoin considered as a financial derivative?

Q: How can derivative security be used to hedge portfolio risk?

A: A derivative is depicted as an investment procedure outlined to assist the financial specialist to…

Q: If a security is underpriced (i.e., intrinsic value > price), then what is the relationship…

A: Intrinsic value of a security is the fair value based on the assessment of its fundamentals and…

Q: WHAT IS THE ADVANTAGE OF offshore trust?

A: Offshore trust companies can be defined as those companies which help customers with a high net…

Q: What is the difference (How will the investment earn?) between Money Market, Bond Market, Equity…

A: Financial markets refer broadly to any marketplace where the trading of securities occurs, including…

Q: The derivatives market allows for

A: Derivatives refer to the contract among various parties whose value depends on a set of assets or a…

Q: what is money market hedge

A: A money market hedge is a helpful tool that helps firms to maintain the exchange rate risk.

Q: What is an interest rate swap?

A: Swap is a derivative instrument where two parties agree to exchange payment responsibility on two…

Q: With example, differentiate between a physical settlement and a cash settlement in the derivatives…

A: A derivative market is a financial market in which financial derivatives such as futures contracts,…

Q: What is a derivative and what is its purpose? Give an example of how a firm might use a derivative…

A: A derivative is a type of financial contract whose value is determined by the value of an underlying…

Q: Explain how alternative investments can act as a hedge against inflation.

A: Alternative Investments:  Stocks, bonds are financial instruments that fall under the category of a…

Q: Why the financial instruments do often called derivatives?

A:

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: How do derivatives hedge risk?

A:

Q: What is interest rate parity?

A: Interest rate parity: Interest rate parity is a theory concerning the association among spot…

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: Illustrate Derivatives?

A: Answer: A derivative is described as an investing technique defined to help the financial expert…

Q: Some financial instruments are called derivatives. Why?

A:

Q: What is FX rate?

A: The exchange rate is that rate in which price of the country currency is measured in the term of the…

Q: How does a credit default swap work?

A: The credit default swap is a financial derivative and an agreement between two parties. The seller…

Q: How are derivatives recorded?

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

Q: how a firm might use a commodity derivative to reduce risk in its business? please include a…

A: In the world of derivatives, options etc. commodity derivatives are an important concept.…

Q: What are the implications of interest rate parity theorem.

A: Interest rate Parity:- The interest rate parity (IRP) theory states that the difference between the…

Q: What are credit default swaps?

A: SOLUTION:- Credit default swap is an agreement between issuer of security and the buyer of security,…

Q: What is exchange rate risk?

A: Exchange rate risk It is a chance of occurrence of loss in the investment value because of uncertain…

Q: What is the effect on interest of an interest rate swap?

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

Q: What is the difference between pure arbitrage and risk arbitrage?

A: Pure arbitrage refers to make a riskless profit without taking any risk while risk arbitrage refers…

Q: What is counterparty risk?

A: Counterparty risk can exist in trading, credit, investment.

Q: Money market instruments are distinguished by what characteristics, if any, do they have?

A: The money market is a word that relates to the trading of relatively short-term debt securities.

Q: What are Various Types of Derivative Instruments? How Derivative Instruments work in Financial…

A: Derivative is a type of financial instrument that derives its value from the underlying asset. The…

Q: What are the distinguishing features of a money market instrument? Please answer in broad

A: The market where buyer and seller interact in order to buying and selling of short-term securities…

Q: es tr ice of an individual security in such a market?

A: Market is efficient that means that information about the security is fully available in market.

Q: What is junk bond?

A: junk bonds have lower credit rating than other bonds therefore provides high interest rate to…

Q: What is meant by a derivative investment

A: Derivative is a contract which allows its parties to buy/sell an underlying asset as per the…

Q: What is an efficient market and why is it important for derivatives markets?

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