Answer / shiva

Derivatives are financial instruments that used as a risk
managment tool. the value of derivates derived from its
underlying assets like equity, commodity, currency or
foriegn exchng.
types od derivatives
Future
forward
options-call and put option

And hedgers, speculaters and arbitages are major
participants in dervivative mkt.

The following are details of an invoice from a foreign supplier of goods: 20 pieces of item X @ $ 20 per piece $ 400 20 pieces of item Y @ $ 5 per piece 100 Shippingcharges 40 Discount -80 Total $ 460 Total cost of above shipment of goods is Dh 2,300 which is made up of Dh. 2,070 representing cost of transferring the above invoice amount of $460 and the balance of Dh 230 represents other direct costs You are required to calculate the landed cost in Dirhams for ONE PIECE of item X.

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