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Asset specificity is a term related to the inter-party relationships of a transaction. It is usually defined as the extent to which the investments made to support a particular transaction have a higher value to that transaction than they would have if they were redeployed for any other purpose.
Calculating option prices, and their "Greeks", i.e. sensitivities, combines: (i) a model of the underlying price behavior, or "process" - i.e. the asset pricing model selected, with its parameters having been calibrated to observed prices; and (ii) a mathematical method which returns the premium (or sensitivity) as the expected value of option ...
A higher credit rating could allow the special-purpose vehicle and, by extension, the originating institution to pay a lower interest rate (and hence, charge a higher price) on the asset-backed securities than if the originating institution borrowed funds or issued bonds.
Real options valuation, also often termed real options analysis, [1] (ROV or ROA) applies option valuation techniques to capital budgeting decisions. [2] A real option itself, is the right—but not the obligation—to undertake certain business initiatives, such as deferring, abandoning, expanding, staging, or contracting a capital investment project. [3]
Technology firms, such as Apple have "low barriers to entry and high barriers to exit, exacting steep switching costs on users who dare to defect." Leaving the Apple platform of technology would cause a customer to lose all of their downloaded content, including music, movies, applications, games, and more critical date such as virtual panic ...
An asset with a known price in the future must today trade at that price discounted at the risk free rate. Note that this condition can be viewed as an application of the above, where the two assets in question are the asset to be delivered and the risk free asset. (a) where the discounted future price is higher than today's price:
Most money market accounts require higher minimum balances than regular savings accounts. These minimums can range from $2,500 to $10,000. In exchange, they reward you with higher tiered rates for ...
Additionally, U.S.-based private-equity firms raised $215.4 billion in investor commitments to 322 funds, surpassing the previous record set in 2000 by 22% and 33% higher than the 2005 fundraising total [89] The following year, despite the onset of turmoil in the credit markets in the summer, saw yet another record year of fundraising with $302 ...