Tag Archives: cfa
Non-Callable Bonds
Non-Callable Bonds
Non-callable bonds are also known as non-redeemable. non-callable bonds can only be paid out at maturity. The issue...
Compound Options
Compound Options (Words<500)
A compound option is an option on another option. A split-free or compound option is an option for wh...
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...
Effective Duration
Effective Duration (Words <500)
The duration calculation for bonds that have embedded options is known as effective duration. It he...
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...
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 ...
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 ...
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...
Modern portfolio theory
Modern Portfolio Theory
Modern portfolio theory is an investment theory. It allows the investor to assemble an asset portfolio that wi...
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...
