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In finance, an option is a contract which conveys to its owner, the holder, the right, but not the obligation, to buy or sell a specific quantity of an underlying asset or instrument at a specified strike price on or before a specified date, depending on the style of the option. Options are typically acquired by purchase, as a form of ...
In finance, a bond option is an option to buy or sell a bond at a certain price on or before the option expiry date. [1] These instruments are typically traded OTC. A European bond option is an option to buy or sell a bond at a certain date in future for a predetermined price. An American bond option is an option to buy or sell a bond on or ...
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]
Contingent claim. In finance, a contingent claim is a derivative whose future payoff depends on the value of another “ underlying ” asset, [1][2] or more generally, that is dependent on the realization of some uncertain future event. [3] These are so named, since there is only a payoff under certain contingencies. [4]
Probability is the branch of mathematics concerning events and numerical descriptions of how likely they are to occur. The probability of an event is a number between 0 and 1; the larger the probability, the more likely an event is to occur. [ note 1 ][ 1 ][ 2 ] A simple example is the tossing of a fair (unbiased) coin.
Myron Samuel Scholes (/ ʃoʊlz / SHOHLZ; [ 1 ] born July 1, 1941) is a Canadian – American financial economist. Scholes is the Frank E. Buck Professor of Finance, Emeritus, at the Stanford Graduate School of Business, Nobel Laureate in Economic Sciences, and co-originator of the Black–Scholes options pricing model.
A loan modification is a form of relief for borrowers struggling to make mortgage payments. A refinance is something you choose to do — if you don’t refi, the consequences are minor. You might ...
Science is a systematic discipline that builds and organises knowledge in the form of testable hypotheses and predictions about the world. [1] [2] Modern science is typically divided into two or three major branches: [3] the natural sciences (e.g., physics, chemistry, and biology), which study the physical world; and the behavioural sciences (e.g., economics, psychology, and sociology), which ...