Search results for: “arbitrage”
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Bid Bond
Bid bond Definition of Bid bond : a surety bond often required of contractors bidding on construction work to ensure that the successful bidder will accept the job and will also provide a performance bond In the United States, according to 15 USCS § 694a (1), [Title 15. Commerce and Trade; Chapter 14B. Small Business…
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Agio
A term used in commercial transactions to denote the difference of price between the value of bank notes or other nominal money and the coin of the country. 5 Mees. & W. 535. …
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Put-Call Parity Relationship
The relationship between the price of a put and the price of a call on the same underlying security with the same expiration date, which prevents arbitrage opportunities. Holding the stock and buying a put will deliver the exact payoff as buying one call and investing the present value (PV) of […]
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Perfect Capital Market
A market in which there are never any arbitrage opportunities….
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One-Factor Apt
A special case of the arbitrage pricing theory that is derived from the one-factor model by using diversification and arbitrage. It shows the expected return on any risky asset is a linear function of a single factor….
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Lifting A Leg
Closing out one side of a long-short arbitrage before the other is closed….
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Black-Scholes Option-Pricing Model
A model for pricing call options based on arbitrage arguments that uses the stock price, the exercise price, the risk-free interest rate, the time to expiration, and the standard deviation of the stock return….
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Book-entry bond
Book-entry bond Definition of Book-entry bond : a bond whose ownership is recorded by computer but for which no certificate is issued Book entry bond refers to a bond whose ownership is recorded by computer but for which no certificate is issued. Book entry bonds are not available on paper. The details of the Book…
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Intercession
nounarbitrage arbitration conciliation deprecatio diplomacy instrumentality interference interjection intermeddling intermediation interposition intervention mediation ne…
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Popular Terms
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