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| A derivative instrument or contract is one whose value and other characteristics are derived from those of another asset or instrument (sometimes known as the Underlying Asset).
| | '''Op'''erating '''Ex'''penditure. |
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| Derivative instruments are widely used by non-financial corporates for hedging purposes.
| | Opex is expenditure on items which are consumed, or whose benefits are otherwise enjoyed, in the short term, generally within the current financial reporting period. |
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| | | Opex is contrasted with capital expenditure ('capex'). |
| <span style="color:#4B0082">'''Example'''</span>
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| A share option is a type of derivative contract, allowing the holder to buy shares at a certain predetermined strike price.
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| The value of the share option derives from the current price of the related underlying share relative to the option strike price.
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| == See also == | | == See also == |
| * [[CCR]] | | * [[Capitalise]] |
| * [[Collateral]] | | * [[Capital expenditure]] |
| * [[Commodity risk]] | | * [[Expenditure]] |
| * [[CP]] | | * [[Revenue expenditure]] |
| * [[Credit support annex]]
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| * [[Embedded derivative]]
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| * [[ETD]]
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| * [[FC]]
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| * [[Fixing instrument]]
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| * [[FVTOCI]]
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| * [[FVTPL]]
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| * [[Hedge fund]]
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| * [[Hedging]]
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| * [[IR]]
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| * [[ISDA Master Agreement]]
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| * [[Margining]]
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| * [[Mark to market]]
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| * [[Maturity]]
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| * [[Notional principal]]
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| * [[Option]]
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| * [[Outright]]
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| * [[Potential Future Exposure]]
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| * [[Replacement cost]]
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| * [[Strike price]]
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| * [[Tracker fund]]
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| * [[Transfer]]
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| * [[Underlying]]
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| * [[Underlying asset]]
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| * [[Underlying price]]
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| * [[XVA]]
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| ===Other links===
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| *[http://www.treasurers.org/node/8599 Masterclass: Derivatives, The Treasurer, December 2012]
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| [[Category:Risk_frameworks]]
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Revision as of 15:11, 6 September 2016
Operating Expenditure.
Opex is expenditure on items which are consumed, or whose benefits are otherwise enjoyed, in the short term, generally within the current financial reporting period.
Opex is contrasted with capital expenditure ('capex').
See also
