Search results
Results from the WOW.Com Content Network
A structured note is an over the counter derivative with hybrid security features which combine payoffs from multiple ordinary securities, typically a stock or bond plus a derivative. When the product depends on a credit payoff, it is called a credit-linked note.
From the economic point of view, financial derivatives are cash flows that are conditioned stochastically and discounted to present value. The market risk inherent in the underlying asset is attached to the financial derivative through contractual agreements and hence can be traded separately. [11] The underlying asset does not have to be acquired.
The quantity and class of shares (if there are more than one class). The strike price, also called the exercise price. This is price at which the issuer will sell shares to the investor. The settlement dates, this is the dates on which shares will change hands from the Issuer to the buyer.
A structured product, also known as a market-linked investment, is a pre-packaged structured finance investment strategy based on a single security, a basket of securities, options, indices, commodities, debt issuance or foreign currencies, and to a lesser extent, derivatives.
A delta one product is a derivative with a linear, symmetric payoff profile. That is, a derivative that is not an option or a product with embedded options. Examples of delta one products are Exchange-traded funds, equity swaps, custom baskets, linear certificates, futures, forwards, exchange-traded notes, trackers, and Forward rate agreements ...
The owners of the PRDC notes, usually retail investors, don't hedge their risks in the market. Only the banks, which are all short the notes, actively hedge and rebalance their positions. In other words, if there is a significant move in FX, for example, all the PRDC books will need the same kind of FX volatility rebalancing at the same time.
C. Calendar spread; Callable bull/bear contract; Capital guarantee; Cash flow hedge; Cashflow matching; CDO-Squared; Chain of Blame; Chan–Karolyi–Longstaff–Sanders process
In finance, a forward contract, or simply a forward, is a non-standardized contract between two parties to buy or sell an asset at a specified future time at a price agreed on in the contract, making it a type of derivative instrument.