Derivative Instruments
Derivative Instruments is the ability to understand, evaluate and manage financial contracts such as futures, options, and swaps, derived from underlying assets like stocks, bonds or commodities. This capability includes risk assessment, valuation, and strategic application within an accounting and finance context.
Level 1: Emerging
At an emerging level, you are beginning to understand the basics of derivative instruments, identifying rudimentary functions, and their application in financial risk management within accounting contexts.
Level 2: Proficient
At a proficient level you are able to accurately analyze and value derivative instruments, apply hedging strategies, and assess associated risks within the context of Finance and Accounting.
Level 3: Advanced
At an advanced level, you are able to demonstrate an in-depth understanding of derivative instruments, including complex products and strategies, their valuation, and their impact on financial statements and risk management.
