According to IAS 39.10, a financial instrument that – necessarily including a non-derivative host contract – results in a portion of the instrument’s cash flows (hybrids) being subject to fluctuations (oscillations: vibrations above and below a mean value) similar to those of a stand-alone derivative. – An embedded derivative changes some or all of the cash flows from a contract depending on a specified interest rate, financial instrument price, commodity price, foreign exchange rate, price or rate index, credit rating or index, or other market-varying variable. – See derivative.
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/