67 Results for Tag: pricing

Knock-Out Option

Knock-Out Option What is a 'Knock-Out Option' A knock-out option is an option with a built-in mechanism to expire worthless if a specified price level is exceeded. A knock-out option sets

Heath-Jarrow-Morton Model (HJM Model)

Heath-Jarrow-Morton Model (HJM Model) What is 'Heath-Jarrow-Morton Model - HJM Model' A model that applies forward rates to an existing term structure of interest rates to determine appropr

Yearly Price Of Protection Method

Yearly Price Of Protection Method What is 'Yearly Price Of Protection Method' A method used in actuarial analysis, which is often used in the insurance industry. The Yearly Price Of Protec

Import And Export Prices

Import And Export Prices What is 'Import And Export Prices' Two indexes that monitor the prices of imports and exports in the United States. The import and export prices indexes are create

Illiquid Option

Illiquid Option What is 'Illiquid Option' An option contract that cannot be sold for cash quickly at the prevailing market price. Illiquid options have very low or no open interest. Expl

Idiosyncratic Risk

Idiosyncratic Risk What is 'Idiosyncratic Risk' Idiosyncratic risk, also referred to as unsystematic risk, is the risk that is endemic to a particular asset such as a stock and not a whole

Incentive Fee

Definition of an Incentive Fee An incentive fee, also known as a performance fee, is a fee which a client fund may be charged by the investment manager that manages its assets. The cost of

Implied Volatility (IV)

Implied Volatility (IV) What is 'Implied Volatility - IV' Implied volatility is the estimated volatility of a security's price. In general, implied volatility increases when the market is

Mainstream Economics

DefinitionMainstream economics may be used to describe the body of knowledge, theories, and models of economics, as taught across universities, that are generally accepted by economists as a

Rainbow Option

DefinitionRainbow option is a derivative exposed to two or more sources of uncertainty, as opposed to a simple option that is exposed to one source of uncertainty, such as the price of under
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