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Credit Risk. Credit risk or default risk evolves from the possibility that one of the parties to a derivative contract will not satisfy its financial obligations under the derivative contract.
A derivative is a contract with financial performance that is derived from the performance of something else. That "something else" is an underlying asset commonly termed "the underlying" and may be another financial instrument, another derivative, or an index of some kind.
No, a mortgage is a contract.
Well a stock option loan is an derivative financial instrument that specifies a contract between two parties for a furture transaction on an asset at a reference price. The buyer of the option gains the right, but not the obligation, to engage in that transaction, while the seller incurs the corresponding obligation to fulfill the transaction.
If it is not specified in the contract then it is likely at the descretion of the lender.
A forwardbased contract obligates one party to buy and a counterparty to sell an underlying asset, such as foreign currency or a commodity, with equal risk at a future date at an agreed-on price.
A component of a hybrid security that is embedded in a non-derivative instrument. An embedded derivative can modify the cash flows of the host contract because the derivative can be related to an exchange rate, commodity price or some other variable which frequently changes. For example, a Canadian company might enter into a sales contract with a Chinese company, creating a host contract. If the contract is denominated in a foreign currency, such as the U.S. dollar, an embedded foreign currency derivative is created. According to the International Financial Reporting Standards (IFRS), the embedded derivative has to be separated from the host contract and accounted for separately unless the economic and risk characteristics of both the embedded derivative and host contract are closely related.
Credit Risk. Credit risk or default risk evolves from the possibility that one of the parties to a derivative contract will not satisfy its financial obligations under the derivative contract.
A derivative is a contract with financial performance that is derived from the performance of something else. That "something else" is an underlying asset commonly termed "the underlying" and may be another financial instrument, another derivative, or an index of some kind.
Provide the holder with a right, but not an obligation to buy or sell an underlying financial instrument, foreign currency, or commodity at an agreed-on price during a specified time period or at a specified date.
when the condition specified in the contract are not followed then the contract is said to be breached.
Basis Risk. This is the spot (cash) price of the underlying asset being hedged, less the price of the derivative contract used to hedge the asset.
A Lease
Indentureship is a historical system in which individuals would work for a specified period of time under a contract known as an indenture. Often associated with labor migration and colonialism, indentured laborers would work in exchange for passage to a new country or for other benefits. While some individuals entered into indentured servitude voluntarily, others were coerced or deceived into the system.
No, a mortgage is a contract.
Yes,because there is specified time for each of contract in the book of law
you can put obtion when you see the flacuaton in rapid market.