Category: P

When an asset has higher gains than losses. An example of these are long options and bonds. Refer to negative convexity, nonlinear instrument, and positive gamma.

A swap where the receiver getting a fixed interest rates offers a payment to get increased fixed interest rates. Refer to discount swap.

Evidence proving loss that must be submitted to the insurer. It proves the claim is valid.

An option where the buyer can sell underlying put option back to the seller. Refer to call on a call, put on a call, and call on a put.

A swap made only in paper form. Or trade in the paper products line.

The amount of earnings paid to stockholders over the investments lifetime. This payment takes the form of common stock dividends. Refer to dividend yield and plowback ratio.

The amount of capital reinvested that are not paid to shareholders in the form of dividends.

When option purchases expose an investment to a larger price market. Refer to gamma and negative gamma.

The amount an insurer underwrites based on its premiums collected on active policies.

When an insurer must take their share of the losses based on a fixed or variable percentage or monetary value. Refer to excess of loss agreement.

An option where the buyer can sell underlying call option back to the seller. Refer to call on a call, call on a put, and put on a put.

The value of a security at the time of issuance.

When national currency gets its value from another countries currency system. Or when a security company tries to keep its prices close to par value. Refer to crawling peg and managed foreign

A plus + placed on a record when a security is sold at a higher price than previously considered. This initiates a short sale. AKA uptick. Refer to minus, zero plus, and

When assets are greater than liabilies. Refer to gap, gapping, and negative gap.

Early mortgage payment due to the sale of the home or refinancing to get a better interest rate. Refer to model and speed.

A captive where individual accounts called cells are used for selfinsurance. The cells are seperated by statute protecting them from loss. Refer to agency, group, pure, senior, sister and renta captive.

An option that pays the ending price if it is below strike price. Otherwise there is no payoff.

A fixed incomes yield curve depicting interest rates and maturity dates for a marketplace.

The flag in a chart signifing a peak point. At this peak prices drop or raise quickly.