above par
A security which is trading above its redemption value or par value. Purchasers of such securities will make a capital loss if held to maturity (cf. premium; discount). Many corporate bonds are ...
accretion
1 The writing to profit of the increase in the value of an asset over a period of time. For securities, it tends to indicate an increase in the principal ...
agio
1 The premium over par value. Thus a price of 102 would have an agio of 2 (cf. disagio);2 A fee paid for undertaking a transaction.3 Uncommon term for spread.[...]
All-Ordinaries Share Price Riskless Index Note
(ASPRIN) (Australia).Debt securities paying little or no interest where the returns are linked to the performance of the All-Ordinaries index. They are a combination of zero-coupon bonds and stock ...
all-risks policy
An insurance policy covering personal possessions against many risks but not, of course, all risks. A policy of this kind does not list the risks covered; instead it lists only the exclusions. Such ...
amortization
1 The process of treating as an expense the annual amount deemed to waste away from a fixed asset. The concept is particularly applied to leases, which are acquired for a given sum for a specified ...
annualized forward premium
(Forex).The premium or discount between the spot exchange rate and the forward rate stated as an annualized percentage of the spot rate.
appraisal
The assessment of alternative courses of action with a view to establishing which action should be taken. Appraisals may be financial, economic, or technical in emphasis. See decision making.
at par
A transaction, such as a security's redemption, at the face value or par value (cf. discount; premium). See also redemption price.
back spread
The strategy of selling an option near to or at the money (see at-the-money option) and using the premium to buy a number of the same types of option out of the money (see intrinsic value). If this ...
basket option
A type of option or warrant where the underlying is a basket of assets. It is often seen in the foreign exchange market, where it allows the holder to buy ...
bond price quotation
The quotation of bonds as a percentage of par. A quote of 85 would mean a price of 85% of the par value of the bond (that is, the bond ...
Boston option
Name given to zero-cost or deferred premium options, such as a breakforward contract. When used in the currency markets, it is made up of two different contracts: a forward foreign ...
breakeven point
The level of production, sales volume, percentage of capacity, or sales revenue at which an organization makes neither a profit nor a loss. The breakeven point may either be determined by the ...
break-even time
(Bonds).A value indicator for a convertible security. It is taken to be the time required for the premium over the conversion value to be removed by the convertible's yield ...
break-forward
A contract on the money market that combines the features of a forward-exchange contract and a currency option. The forward contract can be undone at a previously agreed rate of exchange, enabling ...
buy and write
An investment strategy that involves writing (selling) an option on a security that one has bought. This enables the investor to benefit from the call premium and to hedge any risk relating to the ...
buy-in
1 The buying of a security at market prices to complete delivery of a failed transaction. If the original seller fails to make good delivery, the buyer can, upon notification ...
