banner_ad

Derivative contract

This query is : Open 
Profile Image

Profile Image

(Querist)
27 September 2014 In forward contract value(payment) is fixed and take delivery hence is not derivative contract But is it derivative contract if the term of settlement of contract is cash settlement ? i.e.,not physical delivery but exchange of difference .
Profile Image

Nikhil Kaushik

Profile Image

Nikhil Kaushik (Expert)
27 September 2014 yes very much it is a derivative contract...
Profile Image

Amit

Profile Image

Amit (Querist)
27 September 2014 So conclution is that derivative contract is dependant on agreement between parties for the term of settlement .If physical delivery and payment is fixed then its not derivative contract and cash settlement then its derivative contract but why in all finance related books there is mentioned that forward contract is the derivative instrument...?
Profile Image

Amit

Profile Image

Amit (Querist)
27 September 2014 Plz clear my doubt about forward contract as derivative instrument as mentioned above...thanks in advance.....
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now


CCI Pro
Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!


Similar Resolved Queries


loading


Unanswered Queries


banner

Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Subscribe Now

Follow us
add to google news


Answer Query



Quick Links



Browse by Category




Latest Job Openings

View all
Company
26 May 2026
Senior Accountant cum purchase Manager

Vardhaman Group of India

Pimpri Chinchwad

CA Inter

View Details
Company
04 June 2026
Semi Qualified CA

Goyal Puneet & Associates

New Delhi

CA Final

View Details
Company
18 May 2026
MIS Executive

Primarc Pecan Retail Limited

Mumbai

B.Com

View Details
Company
23 May 2026
Article Assistant

Geeta Manchanda & CO.

New Delhi

CA Inter

View Details
Company
09 June 2026
Accounts Associate

S Madan and CO

New Delhi

Graduate (Any)

View Details
Company
ARTICLESHIP 08 June 2026
Internal & Taxation Article

O P Bagla & Co LLP

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 09 June 2026
Article Trainee

Numbertree LLP

Mumbai

CA Inter

View Details
Company
26 May 2026
Education Content Creator

Adyayam Education LLP

Bengaluru

CA Foundation

View Details