Question

Please examples of tangible non wasting assets

Answer 1

Answer:

Explanation:

meaning of wasting assets-A wasting asset is an item that has a limited life span and irreversibly declines in value over time. Such fixed assets could be vehicles and machinery. However, in the financial markets, the term refers to options contracts since the contract will continually lose time value after purchase.

 For Example-An option with a fixed end date for its execution may be worth less and less as the end date approaches. This is particularly relevant with regard to derivatives that are built on the movement of a particular underlying security. As the end date approaches and it becomes clearer to which direction the security will move, the risk is lower. Therefore, the market value of the derivative falls accordingly.