Tag: risk

What is 'Lattice-Based Model' An option pricing model that involves the construction of a binomial tree to show the different paths that...

When it comes to buying a home, there are many different options available to you. One of those options is the land lease option....

DefinitionIn probability theory, the law of large numbers is a theorem that describes the result of performing the same experiment a large number of...

What is 'Ladder Option' An option that locks-in gains once the underlying reaches predetermined price levels or "rungs," guaranteeing some profit even...

Definition Laddering is an investment technique that requires investors to purchase multiple financial products with different maturity dates. Laddering What is 'Laddering' The promotion of inflated pre-IPO prices...

Being a landlord can be a very profitable business venture, but it also comes with a lot of responsibility. In this blog post, we...

What is 'EBITDARM' A financial performance measure that stands for earnings before interest, taxes, depreciation, amortization, rent and management fees. EBITDARM is...

What is 'Economic Exposure' A type of foreign exchange exposure caused by the effect of unexpected currency fluctuations on a company’s future cash flows. Also...

What is an earnout and how does it work An earnout is a performance-based bonus that is paid out over time, typically in addition to...

What is 'Economic Blight' The visible and physical decline of a property, neighborhood or city due to a combination of economic downturns,...