20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for September 2025 exams.
Get your discount code >>

EMBEDDED DERIVATIVES

This topic has 1 reply, 2 voices, and was last updated 3 years ago by Stephen Widberg.

Viewing 2 posts - 1 through 2 (of 2 total)

Author

Posts
June 12, 2022 at 5:00 pm #658568
Yovin
Participant
- Topics: 25
- Replies: 1
Hi Sir,
I need some notes on embedded derivatives.
I have Google it , but it does not make sense.
June 13, 2022 at 7:13 am #658597
Stephen Widberg
Keymaster
- Topics: 16
- Replies: 3411
Derivative “hidden” in a ‘host’ contract.

Example:

Bond where redemption value is linked to Stock Market index.

1. Host contract = bond = amortised cost.
2. Hidden derivative – on share prices = fair value.

Don’t worry about numbers. 🙂
Author

Posts

Viewing 2 posts - 1 through 2 (of 2 total)

You must be logged in to reply to this topic.