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Yes! So, we buy a put option at 12000. first we book the option in the amount of the premium via the p&l. At the end of the month, the price falls to 11,000. We then book the NRV and at the same time the FV of the option in the P&L. When the due date comes, we act in the same way. Let's say ...

This means that if it were at -1000, it would simply be 0? In the end, only the premium would be booked in the p&l?

I don't understand what you mean by "the option is ‘never’ drawn but only the price change of the own material is absorbed." In any case, let's focus on what happens to the option's value as you approach the expiry date. There are two scenarios: 1 - The option ends in the money: any value...

our options will also have a due date. There is also the option of double protection. For example, we buy a put option with a strike price of 13000 and sell a put option with a strike price of 11000. The options are due at t+2. If the price were now to fall to 12000 at t+1. Then the first option wou...

Yes, with the option we have the possibility to buy or sell at a certain price. But if we recognise the fair value of the option in the p&l, then we have not exercised the option at that time. 1. purchase of the option DR Option asset; CR Cash 2. valuation at the end of the month Price decline N...

by cost of material i mean the p&l position. In the cash flow hedge, the derivatives are settled before the due date and the resulting effects are acquisition costs and therefore influence the moving average. so if i understand correctly, the option is ‘never’ drawn but only the price change of ...

Yes, that's understandable. This means that I always have an effect on the P&L with the option. (if the option is not equal to the start value) If we say that I have a call option for 4k on the reporting date. Then the entry would be DR options to cost of materials CR. At the same time, the NRV ...

Yes, we are hedging future purchases. It’s a macro hedge so we hedge our order intake with the cash flow hedge. We would like to use options for the unsold stock. To eliminate any price risk.

commidities

Hey, with a $20K call option, I mean the fixed selling price. The $1k is the premium paid. We are using Hedge Accounting with a cash flow macro hedge at the moment. We would now like to expand our hedge accounting to include the unsold portfolio and add options to it. I am not sure if we could use a...

Ah sorry that was the wrong version. So let’s say we do hedge Accounting and I have a call option 20k$ and I buy it for a premium for 1k$. First I have to book the premium but it has to be neutral to success. DR option CR cash If there is no change in value then I don’t have to do anything for month...

Yes, but also changes in time value are to be recorded in OCI and taken to P&L either linearly or when the hedged item affects P&L -- this is the so-called "cost of hedging" approach which was introduced by IFRS 9 So let’s say we do hedge Accounting and I have a call option 20k$ a...