Tag: pricing

Random Factor Analysis

What is 'Random Factor Analysis' A statistical analysis performed to determine the origin of random data figures collected. Random factor analysis is...
absorbed cost

Absorbed Cost

What is an absorbed cost and how does it impact a business's bottom line An absorbed cost is an overhead cost that has been fully...

Return on Assets – ROA

Return on Assets (ROA) is a ratio designed to measure the efficiency of a company’s management. It indicates the company’s profitability as compared to...

Range Accrual

DefinitionIn finance, a range accrual is a type of derivative product very popular among structured-note investors. It is estimated that more than US$160 billion...

Sharpe Ratio

DefinitionIn finance, the Sharpe ratio is a way to examine the performance of an investment by adjusting for its risk. The ratio measures the...

Sales And Purchase Agreement (SPA)

What is a 'Sales And Purchase Agreement - SPA' A sales and purchase agreement (SPA) is a legal contract that obligates a...

Backpricing

What is 'Backpricing' A pricing method used in specific futures contracts whereby the price of the commodity to be delivered is priced...

Binary Option

DefinitionA binary option is a financial option in which the payoff is either some fixed monetary amount or nothing at all. The two main...

Beta

Beta (beta coefficient or β) is a finance term that represents risk of a financial instrument. In simple terms, it is a numerical value...

Callable Swap

What is 'Callable Swap' An exchange of cash flows in which one counterparty makes payments based on a fixed interest rate, the...

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