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Put Overwriting: an Example

Put overwriting is an option strategy that involves being simultaneously long stock and short puts on the same share of...

Users of Interest Rate Swaps

An interest rate swap is an agreement to exchange fixed-rate payments for floating-rate payments. Some swap structures also involve the...

Swaps and Back-To-Back Loans

A swap can be used for hedging a floating-rate liability and a fixed-rate liability. Economically, a swap produces the same...

Examples of Structured Notes

A structured note is a debt security that is issued by a financial institution on an underlying such as a...

Difference Between Futures Contract and Forward Contract

A forward (or advance contract/ forward contract) is an over-the-counter (OTC) contract that obliges its holder to buy or sell...

Difference Between Retracement and Reversal

Retracement is a temporary reversal in the market's direction (i.e., the direction taken by a security's price) before it resumes...

Difference Between Repo Margin and Haircut

Repo margin is the amount by which the market value of the security used as collateral exceeds the face value...

Advantages of Historical Cost

Historical cost accounting is one of the essential bases for preparation of financial statements, whereby measurement of value is based...

Difference Between Deprival Value and Relief Value

Deprival value represents an accounting measurement tool/ concept that determines the value of an asset (solely an asset) based on...

Limitations of Historical Cost Accounting

Historical cost accounting is one of the essential bases for preparation of financial statements, whereby measurement of value is based...