Sentences with phrase «value of the derivative contracts»

The value of a derivative contract depends on, or is derived from, the price of another financial asset.
Since there are no active market transactions in our exposures, we generally use vendor - developed and proprietary models, depending on the type and structure of the contract, to estimate the fair value of our derivative contracts.

Not exact matches

Basically, derivatives are financial contracts with values that are derived from the behavior of something else — interest rates, stock indexes, mortgages, commodities, or even the weather.
Derivatives are contracts between counterparties that derive their value from the performance of an underlying asset, index, or entity.
Crypto Derivatives are contracts between two or more parties and based upon the value of cryptocurrency.
In finance, a derivative is a contract that derives its value from the performance of an underlying asset or other entity (such as an index or interest rate).
I'm comfortable with the use of derivative contracts, which derive their value from stocks, to enhance income
The value of a derivative depends on the value of its underlying asset, thus by predicting the future price of the asset, the future price of the derivative contract can be judged and traded on.
There are three main kinds of derivatives on the commodities market — contracts made between two or more parties who agree on the value of the underlying asset: futures and forwards, options and OTC products.
Derivatives Risk: Derivatives are instruments, such as futures and foreign exchange forward contracts, whose value is derived from that of other assets, rates or indices.
Derivatives values are affected by the performance of the underlying asset or as mentioned contract.
During 2007, the value of the Company's credit derivative contracts were affected predominantly by changes in credit spreads of the underlying reference obligations» collateral and ratings downgrades of securities backing collateralized debt obligations.
Problem 2a is how to deal with the irony that if a company were to enter into a derivative contract reduce a source of risk — i.e., reducing the volatility of future enterprise value — then marking a derivative to market through net income could be expected to increase the volatility of future net income.
In the absence of an actual financial market, we value these insured credit derivatives at the estimated amount that financial guaranty insurers with comparable credit ratings as us would require to assume these contracts.
See «Note 6: Derivative Instruments» for further detail on the model and inputs used to estimate the fair value of these contracts.
A fixed - income derivative is a contract whose value derives from the value of a fixed - income security.
Short ProShares ETFs are non-diversified and should lose value when their market indexes or benchmarks rise — a result that is opposite from traditional ETFs — and they entail certain risks including risk associated with the use of derivatives (swap agreements, futures contracts and similar instruments), imperfect benchmark correlation, leverage and market price variance, all of which can increase volatility and decrease performance.
Derivatives are contracts whose value is «derived» from some other investment, such as a commodity, stock, bond, or currency, or an index of such investments.
Derivative: A contract whose value is based on the performance of an underlying financial asset, index, or other investment.
When you insure long - term risks (such as mortality) or issue financial derivatives (such as interest rate swaps or contracts on the future value of the S&P 500) the risks are not easy to understand.
A derivative is a financial contract linked to the future value or status of the underlying to which it refers (e.g. the development of interest rates or of a currency value).
Furthermore, significant changes in the value of a cryptocurrency also preclude consumer loans on the blockchain, prediction markets, derivatives and long - term smart contracts that require price stability.
Bitcoin derivatives are assets that are sold as contracts that derive their value from the performance of the digital currency.
That would include three principal areas: «cryptocurrency futures — a derivative contract in which each party agrees to exchange cryptocurrency at a future date and at a price agreed by both parties; cryptocurrency contracts for differences (CFDs)-- a cash - settled derivative contract in which the parties to the contract seek to secure a profit or avoid a loss by agreeing to exchange the difference in price between the value of the cryptocurrency CFD contract at its outset and at its termination; [and] cryptocurrency options — a contract which grants the beneficiary the right to acquire or dispose of cryptocurrencies.
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