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9 Results for Tag: sensitivity

Variable Ratio Write

Variable Ratio Write What is 'Variable Ratio Write' An option strategy in which an investor holds a long position in the underlying asset and writes multiple call options at varying strike

Gamma Neutral

Gamma Neutral What is 'Gamma Neutral' A method of managing risk in options trading by establishing an asset portfolio whose delta rate of change is zero. A gamma-neutral portfolio hedges a

Above Par

Above Par What is 'Above Par' A term used to describe the price of a security when it is trading above its face value. A security usually trades at above par when its income distributions

Duration

Duration Let us take bonds as our fixed-income investment to help you understand the concept of duration. When we talk about duration, we are talking about the length of time it will take fo

Key Rate Duration

Key Rate Duration What is 'Key Rate Duration' Key rate duration measures the duration of a security or portfolio at a specific maturity point along the entirety of the yield curve. When ke

Real Estate Operating Company (REOC)

Real Estate Operating Company (REOC) What is 'Real Estate Operating Company - REOC' A company that invests in real estate and whose shares trade on a public exchange. A real estate operati

Obligor

Obligor What is an 'Obligor' An obligor, also known as a debtor, is a person or entity who is legally or contractually obliged to provide a benefit or payment to another. In a financial co

Macaulay Duration

Macaulay Duration What is The 'Macaulay Duration' The Macaulay duration is the weighted average term to maturity of the cash flows from a bond. The weight of each cash flow is determined b

CAMELS Rating System

CAMELS Rating System What is the 'CAMELS Rating System' The CAMELS rating system is a recognized international rating system that bank supervisory authorities use in order to rate financia