What Is an Embedded Derivative? Meaning, Example, 10+ Facts
An embedded derivative is part of a financial instrument that also includes a non-derivative host contract. The embedded derivative requires that some portion of the contract’s cash flows be modified in relation to changes in a variable, such as an interest rate, commodity price, credit rating, or foreign exchange rate. In this post, we’ll discuss ...
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source https://www.studentsavingsclub.com/what-is-an-embedded-derivative/
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