This paper leverages the equal risk pricing (ERP) framework for the valuation of illiquid financial derivatives. Such a method sets the derivative price as the premium, which leads to equal residual ...

Three of the six largest bankruptcies in American history -- WorldCom, Enron, and Global Crossing -- occurred between December 2001 and July 2002, shattering investor confidence and helping to knock ...

James Chen, CMT is an expert trader, investment adviser, and global market strategist. Chip Stapleton is a Series 7 and Series 66 license holder, CFA Level 1 exam holder, and currently holds a Life, ...

Alternative funds can be imposing to some investors. These funds might employ complex investment strategies and sometimes the financial instruments they hold can be tough to decipher. That’s ...

Q Do companies sometimes find “unexpected” derivative instruments? A Yes! When companies want to borrow money at a fixed rate of interest, it is not uncommon to find that borrowing on a variable rate ...

Sebi has clarified that FPIs not not prohibited from issuing ODIs like P-notes, but they have only been barred from issuing ODIs with derivative instruments as underlying. Market regulator Sebi has ...

Please note: This item is from our archives and was published in 2001. It is provided for historical reference. The content may be out of date and links may no longer function. Derivative instruments ...

In the recent past, derivatives have suffered from a poor reputation, with some critics viewing derivative instruments as a form of legalised gambling. While derivatives can be used to speculate on ...

We‘ve all heard stories of billion-dollar future contracts liquidations being the cause of 25% intraday price crashes in Bitcoin (BTC) and Ether (ETH) but the truth is, the industry has been plagued ...

Financial instruments are becoming increasingly complicated, and a new survey of CPA financial executives by the AICPA found concern about the valuation of instruments such as derivatives, with fears ...

The Financial Accounting Standards Board issued ASU 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, in August 2020. ASU 2020-06 simplifies an issuer’s ...