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...