Tag: pricing

CAPM – Capital Asset Pricing Model

The CAPM is a model that helps in determining the price of securities keeping in view the risk an investor takes, and the return...

Partial Release

What is 'Partial Release' A mortgage provision allowing some of the pledged collateral to be released from the mortgage contract if certain...

Put Option

DefinitionIn finance, a put or put option is a stock market device which gives the owner of a put the right, but not the...

Profit Margin

DefinitionProfit margin, net margin, net profit margin or net profit ratio is a measure of profitability. It is calculated by finding the net profit...

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...

Quanto Swap

What is 'Quanto Swap' A swap with varying combinations of interest rate, currency and equity swap features, where payments are based on...

Vasicek Interest Rate Model

What is 'Vasicek Interest Rate Model' A method of modeling interest rate movement that describes the movement of an interest rate as...

Variable Cost-Plus Pricing

What is 'Variable Cost-Plus Pricing' Variable cost-plus pricing is a pricing method in which the selling price is established by adding a...

Vanilla Option

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

Variable Price Limit

What is 'Variable Price Limit' A schedule of price variations above or below the accepted limits determined by the commodities exchanges for...

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