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dexazuxo's version from 2017-05-12 22:34


Question Answer
What is a call and put option?Call option: Gives the holder the right to buy an asset by a certain time for a certain price....... Put option: Gives holder the right to sell an asset by a certain date for a certain price.
Derivatives: What is a swap?When two parties swap different forward contracts where both parties exchange contracts.
Options: the creator and owner? Creator referred to as: Seller, the writer, the short position.......Owner referred to as: The buyer, the long position
Difference between Forward and futures contractsThey are both an agreement to buy or sell an asset at a certain time for a certain price. BUT forwards are traded over the counter for both parties and have high credit risk (must be confident of others credit risk) and futures are standardised forward contracts that are exchange traded and regulated (the risk is transferred to the clearing house)
What is a derivative?A financial instrument whose value is derived from another asset. it has no value of its own. a derivatives promises to deliver some underlying asset at some future time.
Who oversees disciplinary procedures against accountants?ICAEW operates disciplinary procedures, but FRC has the oversight role.
Regulatory bodies of specialist areas.PENSIONS REGULATOR: Encourage people to save money.......INFORMATIONS COMMISSIONER: protect data of customers
Delegated legislation that accountants meet standards.Government set a separate body to oversee accounting professions adherence to standards. The FRC oversees these standards, but IASB set standards by do not regulate.