Interested to Buy Any Domain ? << Click Here >> for more details...
WHAT IS DERIVATIVE?
- 33 Answers
- 61849 Views
- FACT, FactSet Systems, India Infoline, I also Faced
- E-Mail Answers
Answer Posted / nidhi shah
Derivatives are of 2 types: FUTURES and OPTIONS.
As the name suggests, DERIVATIVES means financial
instruments having "DERIVED VALUE".
FUTURES: You buy a COMPANY ABC Stock today at Rs 1050/-
(just for Eg). U enter into a contract with me, to sell the
stock for Rs 1070/- after 1 month. On the D day,
irrespective of whatever is the Market Price of the Stock u
will have to sell it to me at Rs 1070. Reason being, u have
entered into a Future Contract with me, and it is the
obligation of both parties to fulfill the contract.
OPTIONS: It is same as FUTURES, but u have the OPTION to
cancel the contract. that is to say, if the Market price of
the stock on the D day is more than 1070, u can withdraw
your sale contract from me. Options are NOT OBLIGATORY.
In both cases, u pay something called as a MARGIN MONEY, to
enter the contract.
| Is This Answer Correct ? | 3 Yes | 0 No |
Post New Answer View All Answers
EXPAND_________SEAMEC
1. Cold Ice, Inc. sells ice cream sells for $2 each. The variable costs per ice cream are $1 and the fixed overheard costs are $ 0.35. A summer camp wants to place a one-time order for 100 cone of ice cream at a price of $ 1.25 each. What is the minimum price hot dogs should be charge for this special order?
what is cost audit?
i am called for interview but im getting confused wt sort of questions i wd have to face,its a bank job and post is cash ofiicer please help me.
KINDLY PROVIDE ME RBI OFFICER SCALE B QUESTION PAPER (PREVIOUS)
is there any chance for confilcts between an accountant and a sales executive ? If yes how do you resolve the same as an accountant ?
i have interview in KVB on 12-12-08. so Please send me some questions asked in previous interviews contucted by KVB?
What elements of your job do you find most difficult
In Pricing the gallons of petrol sold,service station 'A' follows the first-in-first-out method,while service station'B'follows last-in-first-out method.On 1st January both has the same quantity in stock viz.6,000 gallons at Rs.26 per gallon.During the month,each station recieved additional supplies of 6,000 gallons at Rs.27.50 per gallon.Sales for each of these two stations,during the month,were 8,800 gallons at Rs.29 per gallon. Determine for each service station,profit earned during the month and value of the petrol in stock at close of the month.
Why do you want to work with us
my boss (Managing Partner of a firm) promoted along with his wife a private limited company. he and she spent some Rs. 75,000/- (approx) for the promotion of the company. i know that they usually fall under the head of preliminary expenses. but after receiving the certification of incorporation of the company how shall i repay them to the promoters i.e. what is the accounting entry in the books (initial books of accounts) for the expenditure incurred. they have kept in hand 5,00,000/- each to meet the expenses and they were allotted shares of equal to the amount. can i allot shares for a consideration of cash from and excluding the preliminary expenses. can i take cash towards the share application money (being the cash more than Rs. 20,000/-) as the company has not opened a bank account yet. please give me the detailed answer with journal entries that can be entered in tally. thank you.
post pscwb question and answer for accounting paper I & II for govt.officers departmental examination.
distinguish between price rate and time rate?
Can anyone plz. tell me where can i get the proforma application for DAO.I have tried all the links but i couldn't find any application proforma in the notifications.
Clasify Loss
