Implied volatility

Implied volatility

Implied volatility

The expected volatility in a stock’s return derived from its option price, maturity date, exercise price, and riskless rate of return, using an option-pricing model such as Black Scholes.

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Immunization strategy

Immunization strategy

Immunization strategy

A bond portfolio strategy whose goal is to eliminate the portfolio’s risk against a general change in the rate of interest through the use of duration.

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Immunization

Immunization

Immunization

The construction of an asset and a liability that are subject to offsetting changes in value.

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Immediate settlement

Immediate settlement

Immediate settlement

Delivery and settlement of securities within five business days.

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Idiosyncratic Risk

Idiosyncratic Risk

Idiosyncratic Risk

Unsystematic risk or risk that is uncorrelated to the overall market risk. In other words, the risk that is firm specific and can be diversified through holding a portfolio of stocks.

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