Derivatives and Hedge Accounting Simulation

This simulation helps you explore the basic concepts of derivatives and various hedge accounting scenarios.

Select the derivative type and scenario you wish to simulate below.

Simulation Settings

Derivative Type: Option Contract Futures Contract Swap Contract (Interest Rate Swap)

Hedge Designation: No Hedge Designation Fair Value Hedge Cash Flow Hedge

Option Contract Simulation

Option Type: Put Option (Right to Sell) Call Option (Right to Buy)

Strike Price ($):

Notional Amount (Number of Shares):

Premium Per Share ($):

Market Price at Exercise ($):

Futures Contract Simulation

Notional Amount (Currency Units, €):

Contract Exchange Rate ($/€):

Spot Rate at Settlement ($/€):

Swap Contract Simulation (Interest Rate Swap)

Notional Amount (Principal, $):

Fixed Interest Rate (%):

Floating Interest Rate Base (e.g., SOFR + X%):

SOFR at Settlement (%):

Initial SOFR (%):

Initial Note Payable Fair Value ($):

Settlement Note Payable Fair Value ($):

Simulation Results

Accounting Entries

Summary