Tag: european

Savings Rate

What is a 'Savings Rate' A savings rate is the amount of money, expressed as a percentage or ratio, that a person...

Bailout Bond

What is 'Bailout Bond' A debt security issued by the Resolution Funding Corporation to bail out the savings and loan associations during...

Call Option

DefinitionA call option, often simply labeled a "call", is a financial contract between two parties, the buyer and the seller of this type of...

Impose

What is 'Impose' The act of placing a fee, levy, tax or charge on an asset or transaction to the detriment of...

Quantity-Adjusting Option (Quanto Option)

What is 'Quantity-Adjusting Option - Quanto Option' A cash-settled, cross-currency derivative in which the underlying asset is denominated in a currency other...

Quantitative Easing

DefinitionQuantitative easing, also known as large-scale asset purchases, is an expansionary monetary policy whereby a central bank buys predetermined amounts of government bonds or...

Vanilla Option

What is a 'Vanilla Option' A vanilla option is a financial instrument that gives the holder the right, but not the obligation,...

Vega Neutral

What is 'Vega Neutral' A method of managing risk in options trading by establishing a hedge against the implied volatility of the...
fast market rule

Fast Market Rule

What is the fast market rule The fast market rule is a regulation that requires firms to disseminate information about material events as soon as...

Gamma Pricing Model

What is 'Gamma Pricing Model' An equation for determining the fair market value of a European-style option when the price movement on...

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