Black-Scholes-Merton Model
Black-Scholes-Merton Model
The Black-Scholes-Merton model is a differential equation used to solve for option prices. The Black-Schole...
Tag Archives: cfa
04
Jan
Effective Duration
Effective Duration (Words <500)
The duration calculation for bonds that have embedded options is known as effective duration. It he...
27
Dec
Simple moving average (SMA)
Simple moving average (SMA)
Moving Average (MA) is a commonly used technical analysis and is a stock indicator. The reason for calcula...
21
Dec
Chooser Option
Chooser Option
An option contract that allows the holder to decide the nature of the option i.e., whether the option is a call or put ...
17
Dec
Fund of Funds (FOFs)
Fund of Funds (FOFs)
Fund of Funds is a type of pooled investment fund that invests in other funds. Its investment strategy is holding ...
15
Dec
Downside Risk
Downside Risk
Risk is the uncertainty of losing money invested in a security. To measure the risk or volatility of security we use Sta...
13
Dec
Modern portfolio theory
Modern Portfolio Theory
Modern portfolio theory is an investment theory. It allows the investor to assemble an asset portfolio that wi...
07
Dec
Hedge Ratio
Hedge Ratio
The ratio of exposure to a hedging instrument to the value of the hedged asset is called a hedge ratio. It compares the va...
05
Dec
Trade Validation
Trade Validation
In the financial market, a trade is the conversion of an order placed on the exchange which is said to be completed ...
03
Dec
Equity vs Fixed Income
Equity vs Fixed Income
If a person wants to generate income or appreciation in the future he acquires an asset known as investment. An...