Hi Sir,
I need some notes on embedded derivatives.
I have Google it , but it does not make sense.
Ask the Tutor ACCA SBR
EMBEDDED DERIVATIVES
4y ago#1Derivative "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. :)
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