Question 1 Please discuss with examples what is a primary financial instrument and what is a derivative financial instrument? Question 2 What factors influence the value of a derivative financial instrument, and how should changes in the value of derivatives be treated from an accounting perspective? Question 3 On 1 July 2019 Busta Ltd holds a well-diversified portfolio of shares that is valued at $1.43 million. On this date it enters into 60 futures contracts on All Ordinaries Share Price Index futures in which it takes a sell position. The All Ordinaries Index on 1 July 2019 is 2300 and the total price of the futures contract is calculated as 2300 x 60 x $10 contracts = $1380000. A total deposit of $84000 is paid on the futures contracts. On 29 July 2019 Busta Ltd decides to sell its portfolio of shares and to close out its futures contract. On this date, the market value of the share portfolio is $2.305 million and the All Ordinaries Index is 2495. Required Provide the journal entries to record the above transactions assuming that the above transaction is not designated a cash flow hedge. 1. What is the Gain/Loss on share portfolio? 2. Provide the journal entries to record the transactions assuming that the above transaction is not designated a cash flow hedge