deriv_on_own_equity - Equity Derivative financial asset...

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Settlement options available A B C D Net cash settlement Net share settlement Gross physical settlement Settlement options Example 1 Forward to buy shares Derivative financial asset/liability Derivative financial asset/liability Gross liability If C exists as an alternative, treat as a Gross liability If C does not exist as an alternative, treat as a Derivative financial liability Example 2 Forward to sell shares Derivative financial asset/liability Derivative financial asset/liability Equity Derivative financial asset/liability Example 3 Purchased call option on shares Derivative financial asset Derivative financial asset
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Unformatted text preview: Equity Derivative financial asset Example 4 Written call option on shares Derivative financial liability Derivative financial liability Equity Derivative financial liability Example 5 Purchased put option on shares Derivative financial asset Derivative financial asset Equity Derivative financial asset Example 6 Written put option on shares Derivative financial liability Derivative financial liability Gross liability If C exists as an alternative, treat as a Gross liability If C does not exist as an alternative, treat as a Derivative financial liability...
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This note was uploaded on 01/08/2011 for the course ACC. C-090786 taught by Professor Prof.bantua during the Spring '10 term at Xavier - Ateneo de Cagayan.

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