Derivative Instruments Explained in Under 60 Seconds

Learn the use of the derivative instruments in under one minute, forward and option contracts, as well as cross-currency swaps, in cash flow hedging strategies in the income statement. Understand how these derivative instruments is connected to the income statement, under change in unrealized gains or losses.

Forward contracts involve the sale or purchase of assets at a fixed price in the future, while option contracts offer opportunities to buy or sell underlying assets. Cross-currency swaps, on the other hand, specifically address currency-related agreements.

Discover how these financial instruments mitigate currency risks and support effective risk management.

Want to understand the rest of the income statement while simultaneously looking in to the business of Apple Inc.? Check out the full video:    • INCOME Statement - The FUNDAMENTALS of Bus...  

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