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Hybrid contract,host contract and embedded derivate

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

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December 18, 2020 at 11:53 am #600233
maylynn
Participant
- Topics: 32
- Replies: 34
Dear sir
Please
MaeJun 2019 no 3 IFRs9
In this OQ I m not understand these words are very noisy for me.
can u little explain for me
Hybrid contract,host contract and embedded derivate)
Hoping…
December 20, 2020 at 7:41 am #600369
Stephen Widberg
Keymaster
- Topics: 15
- Replies: 3337
You live in DOLLARLAND.
You agree to buy some potatoes from someone else in DOLLARLAND nut will pay them in RINGITT.
This HYBRID contract comprises:
1. Purchase of potatoes – HOST contract
2. Derivative on exchange rate between dollar and ringitt – EMBEDDED DERIVATIVE
December 20, 2020 at 2:21 pm #600390
maylynn
Participant
- Topics: 32
- Replies: 34
Yeah So Thanks Sir
I ll try to understand
December 21, 2020 at 10:15 am #600468
Stephen Widberg
Keymaster
- Topics: 15
- Replies: 3337
It won’t be tested in numbers- so don’t worry about calculations.
The key point in the example I gave is that you buy things in your own country you don’t normally agree to pay in a different currency.
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