Currency carry trade
The carry of an asset is the return obtained from holding it. It could be an earning or a cost. Cost of Carrying Inventory The Cost of Carrying Inventory is expressed as a percentage of each dollar...
View ArticlePut Option
A put or put option is a deal between two parties to exchange an underlying instrument, at a predetermined price (the strike), by a specified date (also referred to as a maturity date). While one...
View ArticleFederal Student Loan Consolidation
In the U.S., the Federal Direct Student Loan Program (FDLP) includes consolidation loans that let students to combine Stafford Loans, PLUS Loans, and Federal Perkins Loans into one single debt. This...
View ArticleTerm Deposit
Term Deposit refers to a deposit kept with a bank for a fixed term. The maturities for term deposit range from between a month to a few years. Once a customer buys a term deposit, he can withdraw the...
View ArticleHome Equity Loan
Home equity loan refers to a loan in which the borrower utilizes the equity or ownership in his/her home as a collateral. Borrowers generally take out home equity loans to fund significant expenses...
View ArticleWhole Life Insurance
Whole life insurance refers to a life insurance policy that is valid for the insured’s entire life. In most cases, whole life insurance requires the payment of premium every year. In Commonwealth of...
View ArticleCredit Spread (Options)
Credit spread is also known as net credit spread. A credit spread occurs when two options of the same class are simultaneously bought and sold. These two options are also required to have same...
View ArticleCovered Calls
A trader can create a covered call by selling the call options on a security already owned by him. For example, Trader Z owns 1,000 shares of security ABC and then proceeds to sell 10 calls of the same...
View ArticleCredit Card
A credit card is a system of payment that lets the cardholder to pay for products and services based on the promise to pay for them. The credit card is based on the revolving account created by the...
View ArticleCredit Spread (Bonds)
Credit spread is also known as yield spread. Credit spread refers to the difference in yield of different securities. Such difference in yield arises due to the difference in credit quality of...
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