Tag Archive for 'P Glossary'

Pyramid scheme

Pyramid scheme

Pyramid scheme

An illegal, fraudulent scheme in which a con artist contrives victims to invest by promising an extraordinary return but simply uses newly invested funds to pay off any investors who insist on terminating their investment.



Post sponsored by:

Put-call parity relationship

Put-call parity relationship

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 the exercise price. The call value equals C=S+P-PV(k).



Post sponsored by:

Put swaption

Put swaption

Put swaption

A financial tool in which the buyer has the right, or option, to enter into a swap as a floating-rate payer. The writer of the swaption therefore becomes the floating-rate receiver and fixed-rate payer.



Post sponsored by:

Put provision

Put provision

Put provision

Gives the holder of a floating-rate bond the right to redeem his note at par on the coupon payment date.



Post sponsored by:

Put price

Put price

Put price

The price at which the asset will be sold if a put option is exercised. Also called the strike or exercise price of a put option.



Post sponsored by:

Put option

Put option

Put option

This security gives investors the right to sell (or put) fixed number of shares at a fixed price within a given time frame. An investor, for example, might wish to have the right to sell shares of a stock at a certain price by a certain time in order to protect, or hedge, an existing investment.



Post sponsored by:

Put bond

Put bond

Put bond

A bond that the holder may choose either to exchange for par value at some date or to extend for a given number of years.



Post sponsored by:

Put an option

Put an option

Put an option

To exercise a put option.



Post sponsored by:

Put

Put

Put

An option granting the right to sell the underlying futures contract. Opposite of a call.



Post sponsored by:

Pure-discount bond

Pure-discount bond

Pure-discount bond

A bond that will make only one payment of principal and interest. Also called a zero-coupon bond or a single-payment bond.



Post sponsored by: