Tag Archives: frm
Synthetic Cash
Synthetic Cash
An instrument that is tailored to mimic other financial instruments used in investment options is called Synthetic Cash...
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...
Basis Point Value
Basis Point Value
Basis points represent a unit employed to measure interest rates and other financial percentages. A basis point equa...
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...