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An interest rate cap is a financial contract between two parties that provides an interest rate ceiling or cap on the floating rate payments. It actually consists of a series of European call options (caplets) on interest rates. The buyer receives payments at the end of each period when the interest rate exceeds the strike. In return, the buyer needs to pay an up-front premium to the seller. This presentation gives an overview of interest rate cap products and valuation model. You can find more financial product presentations at http://www.finpricing.com/productList.html
An interest rate future is a futures contract between the buyer and seller to deliver an interest bearing asset, that allows the buyer and seller to lock in the price of the interest bearing asset for a future date. Interest rate futures are used to hedge against interest rate risk. Investors can use Eurodollar futures to secure an interest rate for money it plans to borrow or lend in the future. This presentation gives an overview of interest rate future product and pricing model. You find more presentations at http://www.finpricing.com/productList.html
An interest rate cap is a financial contract between two parties that provides an interest rate ceiling or cap on the floating rate payments. It consists of a series of European call options (caplets) on interest rates. An amortizing cap is an interest rate cap whose notional principal amount declines during the life of the contract whereas an accreting cap is an interest rate cap whose notional principal amount increases during the life of the contract. . This presentation gives an overview of interest rate amortizing or accreting cap products and valuation model. You can find more financial product presentations at http://www.finpricing.com/productList.html
An interest rate Bermudan swaption gives the holder the right but not the obligation to enter an interest rate swap at predefined dates. It is one of the fundamental ways for an investor to enter a swap. Comparing to regular swaptions, Bermudan swaptions provide market participants more flexibility and control over the exercising of an option and less restriction. Given those flexibilities, a Bermudan swaption is more expensive than a regular European swaption. In terms of valuation, it is also much more complex. This presentation provides practical details for pricing cancelable swaps. You find more presentations at http://www.finpricing.com/productList.html
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An interest rate floor is a financial contract between two parties that provides an interest rate floor on the floating rate payments. It consists of a series of European put options (floorlets) on interest rates. An amortizing floor is an interest rate floor whose notional principal amount declines during the life of the contract whereas an accreting floor is an interest rate floor whose notional principal amount increases during the life of the contract. This presentation gives an overview of interest rate amortizing or accreting floor products and valuation model. You can find more financial product presentations at http://www.finpricing.com/productList.html
A cancelable swap provides the right but not the obligation to cancel the interest rate swap at predefined dates. Most commonly traded cancelable swaps have multiple exercise dates. Given its Bermudan style optionality, a cancelable swap can be represented as a vanilla swap embedded with a Bermudan swaption. Therefore, it can be decomposed into a swap and a Bermudan swaption. Most Bermudan swaptions in a bank book actually come from cancelable swaps. Cancelable swaps provide market participants flexibility to exit a swap. This additional feature makes the valuation complex. This presentation provides practical details for pricing cancelable swaps. You find more presentations at http://www.finpricing.com/productList.html
A capped swap is an interest rate swap with an interest rate cap option where the floating rate of the swap is capped at a certain level while a floored swap is an interest rate swap with a floor option where the floating rate of the swap is floored at a certain level. Capped swaps or floored swaps limit the risk of the floating rate payer or receiver to adverse movements in interest rates. A capped swap can be decomposed into a swap and a cap whereas a floored swap can be decomposed into a swap and a floor. This presentation gives an overview of capped/floored swap product and valuation. You find more presentations at http://www.finpricing.com/productList.html
A callable bond is a bond in which the issuer has the right to call the bond at specified times from the investor for a specified price. At each callable date prior to the bond maturity, the issuer may recall the bond from its investor by returning the investor’s money. The underlying bonds can be fixed rate bonds or floating rate bonds. A callable bond can therefore be considered a vanilla underlying bond with an embedded Bermudan style option. Callable bonds protect issuers. Therefore, a callable bond normally pays the investor a higher coupon than a non-callable bond. This presentation gives an overview of callable bond and valuation model. You can find more presentations at http://www.finpricing.com/productList.html.
A puttable bond is a bond in which the investor has the right to sell the bond back to the issuer at specified times for a specified price. At each puttable date prior to the bond maturity, the investor may get the investment money back by selling the bond back to the issuer. The underlying bonds can be fixed rate bonds or floating rate bonds. A puttable bond can therefore be considered a vanilla underlying bond with an embedded Bermudan style option. Puttable bonds protect investors. Therefore, a puttable bond normally pays investors a lower coupon than a non-callable bond. This presentation gives an overview of puttable bond and valuation model. You can find more presentations at http://www.finpricing.com/productList.html.
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An interest rate future option gives the holder the right but not the obligation to buy or sell an interest rate future at a specified price on a specified date. It is usually traded in an exchange. The buyer normally can exercise the option on any business day (American style) prior to expiration by giving notice to the exchange. Option sellers (writer) receive a fixed premium upfront and in return are obligated to buy or sell the underlying asset at a specified price. Interest rate future options can be used to hedge against adverse changes in interest rates. In general futures markets tend to be more liquid than underlying cash markets. This presentation gives an overview of interest rate future option product and pricing model. You find more presentations at http://www.finpricing.com/productList.html
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Transformer is a device which transforms energy from one circuit to the other with the concept of Mutual Induction between windings. It helps in transformation of power without any variation in frequency level. Transformer works on the simple concept of Faraday’s Law of EM Induction.
1. (TCO 2) Use the ____ data type for columns that contain letters and special characters and for columns containing numbers that will not be used in calculations 2. (TCO 2) Which of the following functions would you use to extract characters from the middle of a string.