Ch 18: Options & Derivatives in Accounting
About This Chapter
Options and Derivatives in Accounting - Chapter Summary
Whether you are new to accounting or looking to dust off some knowledge, this chapter will help you understand the basics of options and derivatives in accounting. These lessons will teach you what you need to know about stocks and payoffs, option valuation, financial reporting, and more. This chapter will focus on concepts such as:
- The basics of stocks, payoffs, puts, and calls
- The fundamentals of option valuation
- Accounting and financial reporting skills
Our experts have crafted concise videos and text lessons to teach you what you need to know about options and derivatives in accounting, and an interactive Dashboard will help you navigate the materials with ease. Revisit the information as many times as you like, and test your knowledge with short chapter quizzes designed to help you retain what you learn. Take a break, back up and review; the choice is yours. Study advanced accounting on your own time, and when you find yourself breezing through these concepts, check out study.com's array of accounting-based lessons to further bolster your knowledge.
1. Options Basics: Stocks, Payoffs & Puts & Calls
Financial options are derivatives, which means their value is tied to something else: for example, a share of stock. Learn about stocks, options, options contracts, and other financial instruments.
2. Fundamentals of Option Valuation
Option contracts are a type of derivative, meaning they are based on the price valuation of a specific asset. Explore how the factors of time, volatility, spot price, and strike price are measured and included in calculations of the price of different options.
3. Derivative Instruments: Accounting & Financial Reporting
Accounting for the various types of derivatives is important because of the frequent use of derivative contracts in the normal course of business for many companies. This lesson goes over these contracts, the different types, and the associated accounting entries.
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Other Chapters
Other chapters within the Accounting 302: Advanced Financial Accounting II course
- Business Ownership Types
- Key Accounting Concepts
- Accounting Equations & Formulas
- Journals & Ledgers in Accounting
- Financial Statements, Balance Sheets & Income Statements
- Analyzing Financial Statements
- Financial Statement Ratios
- Accounting for Inventory
- Accounting for Depreciation
- Accounting for Compensation, Taxes & Liabilities
- Adjustments & Closing Entries
- Corporate Accounting
- Departmentalized Accounting
- Taxation for Corporations
- Business & Financial Forecasting
- Accounting for Consolidations
- Government Accounting and Financial Reporting
- Required Assignments for Accounting 302
- Studying for Accounting 302