Search results
Results from the WOW.Com Content Network
For a spread put it is = (, +). When K equals zero a spread option is the same as an option to exchange one asset for another. An explicit solution, Margrabe's formula, is available in this case, and this type of option is also known as a Margrabe option or an outperformance option.
The Z-spread of a bond is the number of basis points (bp, or 0.01%) that one needs to add to the Treasury yield curve (or technically to Treasury forward rates) so that the Net present value of the bond cash flows (using the adjusted yield curve) equals the market price of the bond (including accrued interest). The spread is calculated iteratively.
The Interpolated Spread, I-spread or ISPRD of a bond is the difference between its yield to maturity and the linearly interpolated yield for the same maturity on an appropriate reference yield curve. The reference curve may refer to government debt securities or interest rate swaps or other benchmark instruments, and should always be explicitly ...
In finance, the yield spread or credit spread is the difference between the quoted rates of return on two different investments, usually of different credit qualities but similar maturities. It is often an indication of the risk premium for one investment product over another.
Here the coefficient A is the amplitude, x 0, y 0 is the center, and σ x, σ y are the x and y spreads of the blob. The figure on the right was created using A = 1, x 0 = 0, y 0 = 0, σ x = σ y = 1.
The gross spread for an initial public offering (IPO) can be higher than 10% while the gross spread on a debt offering can be as low as 0.05%. For example, if a company sells $100 million of shares in an IPO and the gross spread is 7%, the underwriting syndicate will receive fees of $7 million.
Mortgage rates stalled an upward rise this week as financial markets adjusted to a second Trump presidency. The average 30-year mortgage rate was essentially unchanged at 6.78% for the week ...
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).