PATH INDEPENDANT OPTION
An option whose payment depends on the ending market price of an asset. There are many types of this option. Refer to path dependent option.
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An option whose payment depends on the ending market price of an asset. There are many types of this option. Refer to path dependent option.
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.
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.
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
When a manager only fills offers on one side keeping the rest until they see how the market is going to behave. If things go well all are let out but if
When a financial institution revalues collateral to make adjustments. Refer to upfront collateral.
When deductable increases the same percent as loss incurred. This preserves and increases risk retention.
An option whose payment depends on the price path of the asset at another time. There are many types of this option. Refer to path independant option.
An insurance policy that includes more than two different kinds of coverage; for example, personal and commercial.
The risk that occurs when a large option trades near strike price at its maturity. Whether above or below the strike price it changes the hedge.
When shareholders must pay losses from their personal assets. Refer to limited liability.
When stock with heavy options trades near strike price of its most active option.
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.
A chart showing movement of investments without considering time. Xs and Os show up and down movement and if the trend shifts a new column is added. The chart is made to
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
A bond that converts its assets into negotiable securities. The assets remain on the balance sheet but are reserved for investors in the event of default.
An option that allows investors to redeem their bonds if a trigger event occurs. The sudden redemption reduces cash value and makes the stock less attractive to the buyer.
Risk caused by adverse movements in the market. It is preventable by diversifying. Refer to correlation and correlation risk.
When managers buy extra stock to boost prices higher. This is done at the quarter and end of the financial year. Refer to window dressing.
Assets managed together to reduce risks and improve investment opportunities. Refer to diversification, risk, and theory.
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