- This topic has 1 reply, 1 voice, and was last updated 13 years ago by
.
Viewing 2 posts - 1 through 2 (of 2 total)
- Posts
Hi Mike,
I am confused by something I read in the BPP study text about derivatives:
As one of the 3 characteristics it says: its value changes in response to the change in a specified interest rate, (etc…).
But then as a common example of a derivative it states ‘forward contracts’ which are defined as agreements to buy or sell an asset at a fixed price at a fixed future date.
How can the amount change depending on the specified rate and at the same time be fixed?
Could you shed some light on this please?
Many thanks!
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.