TERMINAL EXPOSURE
Exposure of a derivative based on its ending performance. Refer to average exposure.
Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.
Exposure of a derivative based on its ending performance. Refer to average exposure.
An issue of gilts by the bank of england. It is a small amount used in retail investment.
A portion of securities with a unique set of characteristics. They are used in securitization.
Loss that occurs when a foreign exchange currency is turned into the home countries monetary unit. It is reflected in an equity account. AKA currency translation risk. Refer to transaction risk.
The difference between the eurodollar deposits and treasury bills that mature at the same time. The less the difference the more business improvement.
Comparing the risk premium and risk of a portfolio. It uses the security market line as the benchmark.
A chart connecting the lowest and highest prices over time to display the assets trend.
The difference between a portfolios actual performance and its target. Indexing is used to minimize error. AKA tracking risk.
An insurance payout that happens if three specific triggers occur. The first one is related soley to an insurance risk while the second and third can be financial or insurance related. Refer
A option that is ended when a barrier is breached. The addition of two options makes this option cheaper. Refer to barrier option and twin in barrier option.
An option created with a barrier is breached. Two additional barriers are added to make the option more expensive. Refer to Twin out barrier option and barrier option.
When an interest rate is decided by creating a yield curve for the long and short term. It is a more precise way to choose the best rate.
When an institution offers a client a loan at a low margin in exchange for better business opportunites in the future. This is sometimes illegal. Refer to reverse tying.
It means outside ones jurisdiction. It is any financial action that is not covered legally under a companies laws. A third party can sue if this is mismanaged.
the sum that the insurer or its representatives are legally required to pay through legal ruling or settlement. This sum can included medical and investigative costs.
When futures, options, and equity settle on the same day. This happens once each quarter.
When company control is gained through ownership. It is common for family owned businesses. Refer to legal mechanism, majority, management, minority, and voting trust control.
An option that can be paid off if the reference asset underperforms against a strike price. Refer to outperformance spread and spread option.
When a company in financial distress is urged to invest in low risk low return opportunites. This move protects the position of the firm.
When an option is worthless. A market position that will result in loss if sold.