Sentences with phrase «underlying asset return»

By relating option prices to observables (such as strike prices, time - to - expiration, spot price and so on) and one unknown parameter (implied volatility of the underlying asset return dynamics), Black and Scholes (1973) allowed practitioners to more systematically study observed option prices.

If you are more risk averse, and your portfolio is more heavily weighted towards U.S. - based investments, has lower currency volatility, or low correlation between the currency and the underlying asset return, you may consider having a lower proportion of currency hedged investments.

I sort of looked at it as owning a bunch of alternative assets, but it's much more than that due to the leverage they get from asset management and higher than underlying asset returns due to turning the portfolio over.

Not exact matches

Schwab managers meet for formal reviews every year to adjust target - date funds» underlying assets with an eye to boosting returns.

The fund invests at least 80 % of its assets in component securities of the underlying index, and has posted year - to - date returns of 2.38 % through August 25.

«Recent returns over the last several years have outpaced underlying fundamentals across nearly all asset classes»

They look at asset returns like I do — asking what the non-speculative returns would be off of the underlying assets and starting there.

MLP funds accrue deferred income taxes for future tax liabilities associated with the portion of MLP distributions considered to be a tax - deferred return of capital and for any net operating gains as well as capital appreciation of its investments; this deferred tax liability is reflected in the daily NAV; and, as a result, the MLP fund's after - tax performance could differ significantly from the underlying assets even if the pre-tax performance is closely tracked.

Whether we look at housing, mortgage backed securities, or stocks, the underlying reason for a decline in asset prices is the same - the prices are too elevated, relative to the stream of cash flows they will produce, to achieve an acceptable rate of return.

You will find many different underlying assets here along with great rates of return.

For example, many brokers will not offer the highest rates of returns on their most popular underlying assets.

But 24Option actually has some of the highest return rate on this popular underlying asset at 88 percent per successful trade.

It is true that returns on TFSA assets would otherwise be taxed, and these returns and underlying assets will increase steadily over time.

A total return swap is a swap agreement in which one party makes payments based on a set rate, either fixed or variable, while the other party makes payments based on the return of an underlying asset, which includes both the income it generates and any capital gains.

A total return swap is a contract in which a payer and receiver exchange the credit risk and market risk of an underlying asset.

Investing in commodities indices that are constructed using long or short positions in futures on physical commodities whose value is determined based on the price of the underlying physical commodity plus yield and that trade on public markets that provide adequate liquidity and transparency, with negligible costs and no storage deterioration risk, offer a practical method to gaining commodities exposure and can provide a means for market participants to access the five components of the returns of the asset class.

In total return swaps, the underlying asset, referred to as the reference asset, is usually an equity index, loans or bonds.

Of course, changes in the underlying return - seeking and income - oriented assets may change more meaningfully.

ETFs earn a return through dividends or price appreciation — when the underlying assets go up in value, your investment in the ETF does, too.

In early amortization, all principal and interest payments on the underlying assets are used to pay the investors, typically on a monthly basis, regardless of the expected schedule for return of principal.

Piotroski believes these ratios are important because they «reflect two key constructs underlying a decomposition of return on assets.»

But equity owners must realize their returns will be exactly the same as if they had borrowed that money personally to buy the underlying assets.

Market conditions and changes in the underlying assets may affect the rate of return of the certificate.

By contrast, there are other firms, such as Personal Capital and my firm, Rebalance IRA, where we have similar investment philosophies and similar use of technology, but we have real, live investment advisors who deal extensively with clients and match them with the right asset allocation, low - cost underlying portfolios, very low cost, and disciplined rebalancing, which is really an essential risk management and return tool.

An investor wants to create a 3 - month butterfly spread because he believes the price of BCE will remain constant over the next 3 months (remember, the maximum return of a butterfly spread occurs when the underlying asset remains around the middle strike price K2).

The underlying idea of a well planned out asset allocation (used in conjunction with rebalancing) is to (a.) get better returns (b.) reduce risk.

The objective of currency hedging is to reduce or eliminate the effects of foreign exchange movements over the life of the investment, such that a Canadian investor receives a return solely based on the change in value of the underlying assets, without the effect of changes in currency values.

Assuming you measure your returns in Canadian dollars, that would result in a loss even if the price of the underlying asset were unchanged.

Because a bond mutual fund is just a collection of bonds, at any given time its expected return and risk are exactly equal to those of the underlying assets it holds.

And the model's geared to the markets (underlying asset growth's a natural tailwind) & enjoys a network effect (good returns & more AUME tend to attract even more AUME).

Rigorous bottom - up selection process targets managers with a core competency in driving operational improvement in underlying assets and a historical track record of delivering sustained investment returns over the long term

Also, most structured products are linked to price appreciation in their underlying assets, but not total returns, essentially forgoing dividend payments.

KODDs, on the other hand, have a trigger feature such that depreciation of the underlying asset beyond the barrier level removes the possibility of positive returns on the note if the asset has depreciated in value as of the final observation date.3 Within our sample, no KODDs offer buffered exposure to negative returns of the underlying asset.

In this article, we extend our analysis and valuation of ARBNs to include a new type of product, DDs, that are also linked to the absolute return of an underlying asset within a particular range but lack principal protection.

Assume that the underlying asset has a log - normal return distribution with mean μ = r − q − σ2 / 2 and variance σ2.

A swap is an agreement in which one party makes payments based on a set rate, either fixed or variable, while the other party makes payments based on the return of an underlying asset, which includes both the income it generates and any capital gains.

In a Total return swap, the underlying asset, referred to as the reference asset, is often an equity or bond index.

It is important to note that Market - Linked CDs may have features such as a maximum return cap or averaging, which could result in the performance of the CD differing from a direct investment in the underlying index or reference asset.

The fund has a policy to invest, under normal circumstances, at least 80 % of its assets (net assets, plus the amount of any borrowings for investment purposes) in underlying funds that are managed to seek investment returns that track particular market indices.

The underlying asset (the principal, if you will) is the atmosphere itself, and the dividends represent the return to owners (all of us equally) from rent paid by users (polluters).

As you know, there is a possibility that the underlying assets in your account may provide positive or negative returns.

The bonus rate is decided after considering a variety of factors such as the return on the underlying assets, the level of bonuses declared in previous years and other actuarial assumptions (especially future liabilities and anticipated investment returns), as well as marketing considerations.

According to the FSMA, some of these platforms also offer other financial products with cryptocurrencies as their underlying asset, such as savings accounts with promised guaranteed returns, servicing rights or derivative products such as CFDs.

This suggests that given the exact same underlying investment (in property or in any other asset), the expected return for holding it in a publicly traded structure as opposed to a non-traded structure ought to be at least 4 percent higher.

By contrast, returns typically associated with real estate equity strategies are mostly «back - ended» and are dependent on asset appreciation, capitalization rate compression, cash flow growth, aggressive refinancing and / or sale of the underlying property.