5 Results for Tag: scholes

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

Quantity-Adjusting Option (Quanto Option)

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 cu


Volatility Volatility is the variation in the trading prices over a period of time that is calculated with the help of standard deviation or variation between returns from the market index.

Fair Market Value Purchase Option

Fair Market Value Purchase Option What is 'Fair Market Value Purchase Option' The right but not the obligation to buy a leased asset at the end of the lease term for a price that represent

Gamma Pricing Model

Gamma Pricing Model What is 'Gamma Pricing Model' An equation for determining the fair market value of a European-style option when the price movement on the underlying asset does not rese