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The ratio of the dollar price change in the price of an option to a 1% change in the expected price volatility.
Knockin Option
An option that “comes to life” when a trigger event occurs. Typically when a price crosses a particular barrier it pulls the trigger.
Knockout Option
An option that “dies” when a trigger event occurs. Typically when a price crosses a particular barrier it pulls the trigger.
Contracts such as options and futures whose price is derived from the price of the underlying financial asset.
Value date 1. In the Eurodeposit and FX markets, the delivery date for funds traded. For the spot market it would be the spot date, ordinarily two business days after the transaction. For the forward […]
Accrued Interest Interest earned between the most recent interest payment and the present date but not yet paid to the lender. Accredited investor Refers to a person whose net worth, or joint net worth with […]
