Characteristics of a derivative, except:

It is an agreement between two parties to exchange a specified amount of a commodity, security, or foreign currency at a specified date in the future at a pre-agreed price. It is a contract to buy or sell a commodity, security, or foreign currency at a specified amount or quantity; at a specified future date; and at a price which is agreed upon right now

It is a contract that gives the holder the right, but not the obligation, to buy or sell an asset at a specified price any time during a specified period in the future. When the holder exercises his right, the writer of the option is obligated to perform his obligation on the option contract. It provides the holder only an option, not an obligation, to buy or sell a financial instrument or security at a pre-agreed price called strike price.

It refers to designating one or more hedging instruments so that their change in fair values or cash flows offset, in whole or in part, the change in the fair value or cash flows of the hedged item.

It is a designated derivative or a designated non-derivative financial asset or financial liability whose fair value or cash flows are expected to offset changes in the fair value or cash flows of a designated hedged item

It is a hedge of the exposure to changes in fair value of a recognized asset or liability or an unrecognized firm commitment that is attributable to a particular risk and could affect profit or loss.

It is a hedge of the exposure to variability in cash flows that is attributable to a particular risk associated with a recognized asset or liability or a highly probable forecast transaction and could affect profit or loss.

Discontinuance of fair value hedges, except:

Discontinuance of cash flow hedges, except: