Volatility

Volatility

Volatility

A measure of risk based on the standard deviation of investment fund performance over 3 years. Scale is 1-9; higher rating indicates higher risk. Also, the standard deviation of changes in the logarithm of an asset price, expressed as a yearly rate. Also, volatility is a variable that appears in option pricing formulas. In the option pricing formula, it denotes the volatility of the underlying asset return from now to the expiration of the option.



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Virtual currency option

Virtual currency option

Virtual currency option

A new option contract introduced by the PHLX in 1994 that is settled in US$ rather than in the underlying currency. These options are also called 3-Ds (dollar denominated delivery).



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Vertical spread

Vertical spread

Vertical spread

Simultaneous purchase and sale of two options that differ only in their exercise price. See: horizontal spread.



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Vertical merger

Vertical merger

Vertical merger

A merger in which one firm acquires another firm that is in the same industry but at another stage in the production cycle. For example, the firm being acquired serves as a supplier to the firm doing the acquiring.



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