82,853
edits
Equity derivative: Difference between revisions
Jump to navigation
Jump to search
→Features
Amwelladmin (talk | contribs) |
Amwelladmin (talk | contribs) |
||
| Line 16: | Line 16: | ||
====Features==== | ====Features==== | ||
Equity derivatives reference the performance of the [[underlier]] over the term of the Transaction: The “{{eqderivprov|Final Price}}”) is divided by the “{{eqderivprov|Strike Price}}” (also known as “{{eqderivprov|Initial Price}}”) to yield a percentage. | Equity derivatives reference the performance of the [[underlier]] over the term of the Transaction: The “{{eqderivprov|Final Price}}”) is divided by the “{{eqderivprov|Strike Price}}” (also known as “{{eqderivprov|Initial Price}}”) to yield a percentage. | ||
*A percentage of greater than 100% implies a positive return | *A percentage of greater than 100% implies a ''positive'' return during {{eqderivprov|Transaction}}. | ||
*A percentage of less than 100% implies a negative return. You’re [[out-of-the-money]], soldier. | *A percentage of less than 100% implies a ''negative'' return. You’re [[out-of-the-money]], soldier. | ||
===Key concepts=== | ===Key concepts=== | ||