did anyone tell you that YOU ARE THE BEST! thank you so much for this extensively in-depth illustration. Throughout my undergrad journey of accounting this is the first time when I actually understand these fin instruments so THANK YOU! I have a presentation to give next week for my acco theory class and this really really helps. I hope I can use your potato example if I can explain it in shorter time span than this, I think it will be fun and my peers will be able to grasp the concepts really quick. Good day!
Thank you so much for the video.I am a student of International Financial Analysis from jonkoping University.The lecture matched with my assignment content.Sir, will you share more video about Put-call parity ,Option Pricing: The “binomial” approach,Geometric Brownian Motion,Black-Scholes option pricing formula,Hedging options and also the payoff diagram ,payoff table to future and forward contract ?
Great explanation! I just had a quick question though. So you said the price of the contract changes based on the underlying asset... that kind of confused me. The price of the contract is locked at an agreed upon price irrespective of the future price of the underlying asset which means the price of the contract will not change even if the price of the asset goes up or down. the only thing that will be changing is the gain/loss and not the price of the contract... so how does this reconcile with the definition of a derivative?
Let me try and help. I have 20 rupee today with which I can buy 1 kg onions. So if someone asks me to quantify 20 Rs . I will say its equivalent to a kg of onion. Now imagine, if price of onions rise to 40 per kg, with the same 20 Rs I can buy only half kg of onions. Here the underlying value of currency is same and but its value changes with respect to what it can buy. Similarly, in a contract the underlying asset is same but its price changes depending upon the party it benefits. There is a difference between actual value and predicted value, locked in price is what we predicted but actual asset value is what we will come to know only after maturity date (which is the actual price of underlying asset) Hope it helps.
Robera A good question ,remember what he said, derivate is a financial instrument (it might be financial asset or f.liability) So in balance sheet either we have to record asset or liability as always remember derivate is always recorded at, Fair value/market value, any gain or losses will recorded in profit and loss a/c , Lets assume after three months the price will be 30/kg so what mr shetty will recorded? he will have to revalue it asset(derivate) from 25/kg to 30/kg in total he will record 30000 instead of 25000,so the point in the definition "derivate value is changing due to a change in the value of *underlying asset has proved". *it can be any thing like equities,exchange rate etc.
So a forward is a contract on an underlying asset between two people and a future is the same except with a contract holder (exchange)? Please correct me if I'm wrong
Thanks for this presentation! Your examples are great! Btw, to avoid classroom laughs in the future, perhaps you may want to avoid naming your restaurant owner as Mr. Shetty. :) But, truly thank you for the informative film.
Why Whats the problem with Mr Shetty? Its a common name in Restaurant Owners, and they have been successfully running it since ages. Complex Concepts are better understood by giving funny examples so they are easy to grasp.
sir i am a ca student....i do not have any degree and i am not in any such undergraduate course right now.....i have passed ipcc both groups ....am i eligible for cfa
Chetan Garg yes. my sister passed no degree. They are just interested in whether you pay the exam fee. After that it is up to you whether that is a good investment.
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This is the best and most clear explanation given in youtube about derivatives. Thumbs up !
I don't have to really study after watching this videos.......thank you.
did anyone tell you that YOU ARE THE BEST! thank you so much for this extensively in-depth illustration. Throughout my undergrad journey of accounting this is the first time when I actually understand these fin instruments so THANK YOU! I have a presentation to give next week for my acco theory class and this really really helps. I hope I can use your potato example if I can explain it in shorter time span than this, I think it will be fun and my peers will be able to grasp the concepts really quick. Good day!
I did so much research for understanding derivatives....but finally I got this video.... thanks man...very useful... thanks again
great job..absolutely loved the explanation !! truly a saviour !! got my concepts cleared from the Base !!! thanks a bunch !!
I have seen a lot of videos on the topic but your explanation was very good and simple to understand. Hope to see more on this topic.
simple and yet so effective. thank you Utkarsh and team for this.
Remember the day count for calculating the interest and discounting. The difference between actual/360 and actual/365 makes a huge difference.
Way of explanation is very easy and i could understand easily....
This is so good. Beautifully explained each and everything.
Thank you so much for the video.I am a student of International Financial Analysis from jonkoping University.The lecture matched with my assignment content.Sir, will you share more video about Put-call parity ,Option Pricing: The “binomial” approach,Geometric Brownian Motion,Black-Scholes option pricing formula,Hedging options and also the payoff diagram ,payoff table to future and forward contract ?
I didn't understand finance in class and thought I'll never get through but this is gold!
Love the way you explain mate! Thanks for your video
this video is easy to understand abt derivatives....
Excellent video. Must share. Planning to join Fintree Pune soonnfpr CFP programme.
Kudos to your utkarsh jain!!
Wonderfully explained.Highly appreciable.👍
Sir, really thanks to you..You make concepts so easy to understand...I always had this fear of options, not any more...Thanks a lot :)
Thank you!
Amazing video.....excellent explanation of the derivatives.
Great sir. I really like this video. Simple explanation and easy to understand
Excellent explanation sir you clarified my all doubts. Iam expecting same kind of videos relating to financial derivatives
what an explanation...superb..so clear..thank you
Great explaination sir...thank you soo much....naiyya par lgadi aapne
Excellent presentation I would like to see more videos on various topics for CFA, thank you very much Mr. Utkarsh Jain.
Amazing sir! you're doing a great job.
explained very simply to understand ....thanks
Easy for understanding.
Thank you for the video.
Excellent explanation of concept... :) thank you sir
Excellent Job.. Very Well Explained with Example. Thanks a lot.... very helpfull.... Thank you so much.....
+janardhan vn thank you for the kind words!
salute to your presentation
Absolutely good lecture, thanks dear 😃
Thanks so very much sir.....What an easy and impressive way.....
+Sapna Khakh thank you!
18:50 Options
Compensation called Option Premium
23:40 Swaps
thank you so much sir ....really great guidance for students like us . i have a doubt i.e, are forward & future contracts transferable?
Good explanation, good knowledge
Perfectly explained. Thank you!
Thank you so much. the video is easy to understand
thats an very clear presentation thank you so much
awesome explanation.... thank you so much buddy
Very good and simple.
Too good explanation. Thank you sir
THANK YOU. YOU GIVE LIGHT TO THE MANY THAT STRUGGLE.
+MarvelGirl100 thank you for your kind words!
Thank you so much for your good effort.
Thank you sir you made it very simple to understand. Cheers!!!
+DANISH shiekh thank you!
Very well explained
Thanks a million. A super presentation.
Great Explanantion Bro......
Keep it up the good work
very useful...n expansion is superb
Thank you Shwetha!
good presentation really i like it..
Wonderful sir g
awesome lecture... thanks
Amazing. Thanks a lot.
Just amazing
Great one. Big thanks :D
very good explanation tq
great explanation
Thank you, great explanation!
amazing as usual 👌
Next level
Thanks a lot sir
Great explanation! I just had a quick question though. So you said the price of the contract changes based on the underlying asset... that kind of confused me. The price of the contract is locked at an agreed upon price irrespective of the future price of the underlying asset which means the price of the contract will not change even if the price of the asset goes up or down. the only thing that will be changing is the gain/loss and not the price of the contract... so how does this reconcile with the definition of a derivative?
I have this same concern. Please explain to make it more clear. Thank you!
Let me try and help. I have 20 rupee today with which I can buy 1 kg onions. So if someone asks me to quantify 20 Rs . I will say its equivalent to a kg of onion. Now imagine, if price of onions rise to 40 per kg, with the same 20 Rs I can buy only half kg of onions. Here the underlying value of currency is same and but its value changes with respect to what it can buy. Similarly, in a contract the underlying asset is same but its price changes depending upon the party it benefits. There is a difference between actual value and predicted value, locked in price is what we predicted but actual asset value is what we will come to know only after maturity date (which is the actual price of underlying asset) Hope it helps.
Robera A good question ,remember what he said, derivate is a financial instrument (it might be financial asset or f.liability)
So in balance sheet either we have to record asset or liability as always remember derivate is always recorded at,
Fair value/market value,
any gain or losses will recorded in profit and loss a/c ,
Lets assume after three months the price will be 30/kg so what mr shetty will recorded? he will have to revalue it asset(derivate) from 25/kg to 30/kg in total he will record 30000 instead of 25000,so the point in the definition "derivate value is changing due to a change in the value of *underlying asset has proved".
*it can be any thing like equities,exchange rate etc.
Great sir..... !!Thank you so much ☺
I have done MBA in marketing can I pursue CFA ...pl tell CFA is for how many years
in derivative contract is it important that anyone party would suffer loss due to price fluctuation in the underlying asset
Excellent. Thanks
Awesome..... Just awesome
Good job
thanks. very well explained!!
awsome video man
Nice explanation
really very helpful... thank you so much!!
Just awesome!!
So a forward is a contract on an underlying asset between two people and a future is the same except with a contract holder (exchange)? Please correct me if I'm wrong
very nice class....
Excellent.....presentation,,thnq
awesome video
Thanks for this presentation! Your examples are great!
Btw, to avoid classroom laughs in the future, perhaps you may want to avoid naming your restaurant owner as Mr. Shetty. :)
But, truly thank you for the informative film.
Why Whats the problem with Mr Shetty? Its a common name in Restaurant Owners, and they have been successfully running it since ages. Complex Concepts are better understood by giving funny examples so they are easy to grasp.
So Nice
Sir can you explain about fibonacci
good job!! appreciable. :) thank u so much....
+sangeeta pokharel thank you!
very informative :) thanks
pretty clear !!
finance was never so easy
How do I purchase your tutorials, What are the prices in $ terms.
+Ransford Armah Hi, You can find out more about our online courses at the following link : www.fintreeindia.com
awesome
Good
BEST BEST BEST
sir i am a ca student....i do not have any degree and i am not in any such undergraduate course right now.....i have passed ipcc both groups ....am i eligible for cfa
Chetan Garg yes. my sister passed no degree. They are just interested in whether you pay the exam fee. After that it is up to you whether that is a good investment.
Liked it but through out the video it feels as if you are eating something and this was very disturbing - I started feeling hungry 😂
Mr whatttt
Suuuuupeeerrrrb
Excellent explanation, Thank you sir.
very well explained
Sir can you explain about fibonacci