What is the notional amount of a derivative? How can the notional amount be misleading?
Question:
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 75% (8 reviews)
The notional amount is the total face amount of the asset or lia...View the full answer
Answered By
Rinki Devi
Professional, Experienced, and Expert tutor who will provide speedy and to-the-point solutions.
Hi there! Are you looking for a committed, reliable, and enthusiastic tutor? Well, teaching and learning are more of a second nature to me, having been raised by parents who are both teachers. I have done plenty of studying and lots of learning on many exciting and challenging topics. All these experiences have influenced my decision to take on the teaching role in various capacities. As a tutor, I am looking forward to getting to understand your needs and helping you achieve your academic goals. I'm highly flexible and contactable. I am available to work on short notice since I only prefer to work with very small and select groups of students.
I have been teaching students for 5 years now in different subjects and it's truly been one of the most rewarding experiences of my life. I have also done one-to-one tutoring with 100+ students and helped them achieve great subject knowledge.
5.00+
2+ Reviews
10+ Question Solved
Related Book For
Intermediate Accounting
ISBN: 978-0324592375
17th Edition
Authors: James D. Stice, Earl K. Stice, Fred Skousen
Question Posted:
Students also viewed these Accounting questions
-
A corporation enters into a $35 million notional amount interest rate swap. The swap calls for the corporation to pay a fixed rate and receive a floating rate of LIBOR. The payments will be made...
-
What is a notional variable, and how does it differ from an assets price?
-
How can an energy producer use derivative markets to hedge risks?
-
Calculate the pre-merger earnings per share for Admiral and Favorite and the pre-merger price-to-earnings (P/E) ratio for each company (based on the stated prices per share). Calculate the exchange...
-
List and describe the options available for the location of the information security functions within the organization. Discuss the advantages and disadvantages of each option.
-
Figure 4-72 shows four switches that are part of the control circuitry in a copy machine. The switches are at various points along the path of the copy paper as the paper passes through the machine....
-
Prepare an installment liquidation statement, a schedule of safe payments, and a predistribution plan. AppendixLO1
-
Quattro, Inc. has the following mutually exclusive projects available. The company has historically used a 4-year cutoff for projects. The required return is 11 percent. a. Compute the payback for...
-
Companies in the same industry can have very different Gross Margin % driven by which of the following: Group of answer choices The ability to charge higher prices than competitors Efficiencies...
-
1. Do you think large-scale providers like Amazon, Microsoft and IBM can influence prices of cloud computing in the longer term? 2. What is your opinion on a long-term price of zero, as currently...
-
Derivatives are to be reported in the balance sheet at their fair value on the balance sheet date. How are unrealized gains and losses on derivatives recognized in the financial statements?
-
A derivative used as an economic hedge of foreign currency risk associated with a foreign currency-denominated asset or liability is not accounted for as a hedge under the provisions of Statement No....
-
The U.S. Department of Education regularly conducts the National Assessment of Educational Progress (also known as the Nations Report Card) to monitor student achievement in subjects such as reading,...
-
5) A frictionless rod of length L rotates counterclockwise in the with constant angular speed w at an angle a to the z axis. A bead of mass m, free to slide on the rod, leaves the origin with initial...
-
1) Louisa is a corn farmer in Illinois. She anticipates a harvest in August of 3 million bushels of yellow corn. Today is May. Louise plans to hedge her sale of corn in August using corn futures...
-
2. DETAILS MY NOTES In a statistical test, we have a choice of a left-tailed test, a right-tailed test, or a two-tailed test. Is it the null hypothesis or the alternate hypothesis that determines...
-
2. The model of a two-story building shown in Figure 2. The girders are assumed to be rigid, and the columns have flexural rigidities EI and EI2, with negligible masses. The stiffness of each column...
-
Prepare journal entries to record these transactions. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually....
-
How has conflict affected me personally?
-
The cost curve for the city water supply is C(Q) = 16 + 1/4 Q2, where Q is the amount of water supplied and C(Q) is the cost of providing Q acre-feet of water. (An acre-foot is the amount of water...
-
Nitrogen dioxide can form in the reaction of oxygen gas and nitrogen gas. In the containers below, the red molecules represent oxygen gas and the blue molecules represent nitrogen gas. Redraw these...
-
Accounting for Goodwill Fred Graf, owner of Graf Interiors, is negotiating for the purchase of Terrell Galleries. The balance sheet of Terrell is given in an abbreviated form below. Graf and Terrell...
-
Accounting for Goodwill On July 1, 2010, Brandon Corporation purchased Mills Company by paying $250,000 cash and issuing a $150,000 note payable. At July 1, 2010, the balance sheet of Mills Company...
-
Copyright Impairment Presented below is information related to copyrights owned by Botticelli Company at December 31, 2010. Assume that Botticelli Company will continue to use this copyright in the...
-
The number of hours studied and the scores that students earned are shown. Creating a scatter chart, which statement is true regarding the relationship between the hours of study and scores earned....
-
Five samples of 12 each were extracted from a population. Based on the central limit theorem, what is the best estimate of the SD of the population? A B C D E 270 230 290 238 315 303 274 270 246 244...
-
In a national test, the mean score was 1575 and the standard deviation was 85. What % of the students earned a score between1500 and 1600 if the scores were Normally distributed?
Study smarter with the SolutionInn App