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Payoff chart from buying a butterfly spread. Profit from a long butterfly spread position. The spread is created by buying a call with a relatively low strike (x 1), buying a call with a relatively high strike (x 3), and shorting two calls with a strike in between (x 2).
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The condor is so named because of its payoff diagram's perceived resemblance to a large bird such as a condor. [6] An iron condor is a strategy which replicates the payoff of a short condor, but with a different combination of options. [7]
This amortization schedule is based on the following assumptions: First, it should be known that rounding errors occur and, depending on how the lender accumulates these errors, the blended payment (principal plus interest) may vary slightly some months to keep these errors from accumulating; or, the accumulated errors are adjusted for at the end of each year or at the final loan payment.
There are four categories on a 2*2 matrix; horizontal is scale of payoff (or benefits), vertical is ease of implementation. By deciding where an idea falls on the pick chart four proposed project actions are provided; Possible, Implement, Challenge and Kill (thus the name PICK). Low Payoff, easy to do - Possible High Payoff, easy to do - Implement
For example, if you transfer $6,000 in credit card debt to a card offering 0% intro APR for 18 months, you could pay off the full amount by making $333 monthly payments with no added interest charges.
Parimutuel betting, or pool betting, is a betting system in which all bets of a particular type are placed together in a pool; taxes and the house-take, or vigorish, are deducted, and payoff odds are calculated by sharing the pool among all winning bets.
A box spread position has a constant payoff at exercise equal to the difference in strike values. Thus, the 40-50 box example above is worth 10 at exercise. For this reason, a box is sometimes considered a "pure interest rate play" because buying one basically constitutes lending some money to the counterparty until exercise. [citation needed]