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Hello
Regarding financial instruments, can you please explain to me what is a hybrid instrument and give an example?
Also what is a derivative and non-derivative, along with examples.Thanks
Hi,
A hybrid (compound) instrument has a mixture of debt and equity, so a convertible debenture is the main example.
The definition of a derivative is within the notes, so you can look for it there. Examples are also mentioned, with futures and options are the main examples.
A non-derivative is anything that is not a derivative, so a simple debt obligation is a non-derivative financial liability/instrument.
Thanks
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