CA Final derivatives — practice questions
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Practice CA Final derivatives in the app →Under Ind AS 109, a DERIVATIVE is a financial instrument with all of which three characteristics?Examples of common derivative contracts include interest rate swaps, currency forwards, commodity futures, andAn "embedded derivative" under Ind AS 109 is:Entity S enters a ₹100 cr notional 5-year pay-fixed (10%) / receive-MIBOR interest rate swap with CounterpartyEntity S enters a ₹100 cr notional 5-year pay-variable (MIBOR) / receive-fixed (10%) interest rate swap with CAn option is purchased that expires OUT OF THE MONEY at maturity (so it is never exercised, and no exchange ofUnder Ind AS 109, all derivatives that are NOT designated as hedging instruments are measured at:Two Indian companies (lessor and lessee in India) sign a lease whose contingent rentals are linked to a US INFUnder Ind AS 109, a CALL or PREPAYMENT OPTION embedded in a host debt contract is considered closely related tEntity B writes a 90-day American call option on shares of Target Ltd. at a strike of ₹100 per share. Strike >A Ltd. issues warrants to its EXISTING shareholders entitling them to purchase additional ordinary shares of ACompany MNL holds a CONVERTIBLE BOND that lets it convert the bond into the ordinary shares of Company Z. IdenA lease contract between two Indian companies provides that lease rentals INCREASE BY ₹3 MILLION IF THE LESSEESilver Ltd. signs a contract on 10 March to purchase 100 ounces of gold; the price is payable on 10 April baseUnder Ind AS 109, the change in fair value of a NON-FINANCIAL ASSET is considered "specific to a party to the