Discontinuance and Naked: Difference between pages

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imported>Doug Williamson
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imported>Doug Williamson
(Create the page. Source: ACT qualifications material.)
 
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1. ''Pensions''.
A 'naked' position in a derivatives contract is one where the holder has no other related offsetting contract, asset or liability.


The cessation of contributions to a pension scheme leading either to winding up or to the scheme becoming paid up.
The only possible profit or gain is from a favourable outturn market price.


Discontinuance valuations are made on such a basis.
Naked positions are, by definition, speculative (rather than hedging).
 
 
2.
 
Similar circumstances and assessments in relation to other entities.




== See also ==
== See also ==
* [[Discontinuance method]]
* [[Arbitrage]]
* [[Going concern]]
* [[Derivative]]
* [[Gone concern]]
* [[Futures]]
* [[Solvency]]
* [[Hedging]]
 
* [[Option]]
[[Category:The_business_context]]
* [[Outturn]]
[[Category:Identify_and_assess_risks]]
* [[Speculation]]
[[Category:Manage_risks]]
[[Category:Risk_reporting]]
[[Category:Financial_products_and_markets]]

Revision as of 10:05, 7 October 2015

A 'naked' position in a derivatives contract is one where the holder has no other related offsetting contract, asset or liability.

The only possible profit or gain is from a favourable outturn market price.

Naked positions are, by definition, speculative (rather than hedging).


See also