POSITIVE BASIS
When the price of cash is greater than the price of the futures. Refer to basis risk and negative basis.
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When the price of cash is greater than the price of the futures. Refer to basis risk and negative basis.
The amount an insurer needs to cover its expenses and generate profit. Fair premium is determined using premium loading and pure premium.
The inflaction of a wholesale purchase. It is based on the manufacturing process not the associated services. Refer to consumer price index, harmonized index of consume prices, and retail price index.
The way premium on property and causality insurance is calculated. Premium loading factors are not used in the process. AKA standard risk. Refer to speculative risk.
Investment capital that came in the form of stock, public offering, or addon.
When the payer can choose to pay fixed rates rather than floating rates. This occurs when the strike price have a high interest rate. Refer to reciever swapation.
The foreign exchange quotes fifth decimal point.
When an asset earns more than it costs to maintain it. Refer to negative carry.
When a company quickly buys a block of stock offering a premium to shareholder. Refer to dawn raid or saturday night special.
A written promise to pay a debt by a specific date. It can be turned to cash by transferring it to another party. See, What Is a Promissory Note? A Legal Guide
A loan whose collateral is securites that has to follow margin rules. The returns are used to purchase other securities. AKA margin loan. Refer to nonpurpose loan.
Stock shared by two companies on one certificate.
A security that pays out in other securities not cash. This occurs when a company is short on cash but has plenty of securites. Refer to reset in kind payment bonds.
The flow a deal makes through clients, banks, and firms. It shows how strong the financial sector is. AKA calendar and visible supply. Refer to shadow supply.
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 defense which insists that the plaintiff never had the right to institute the suit, or that, if he had, the original rightis extinguished or determined.
One which was available to a party and of which he might have had the benefit if he had pleaded it in due season, but which cannot afterwards be heard as a