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Financial Derivatives

Financial Derivatives

Financial Derivatives


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Cartes-fiches 115
Langue English
Catégorie Finances
Niveau Université
Crée / Actualisé 06.04.2018 / 07.04.2018
Attribution de licence Non précisé
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What are the different types of indices?

National indices; Sector indices; Ethnical Indices

For what reasons can options be used?

As portfolio insurance or for speculation purposes.

How is the Black-Scholes model used for FX calles?

It is called Garman-Kohlhagen model

What is the volatility smile?

Volatility increases as options become increasingly in the money or out of the money.

For what can the options skew be used?

It can be used as a measurement of fear in the market.

What is the payback rule?

How many periods management must wait before cumulative cash flows from a project exceed the cost of the investment.

What is the accounting rate of return?

The ratio of the average forecast profits over the project's lifetime.

What is the net present value?

Difference between the present value of projected inflows and the projected outflows.