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  2. Binomial options pricing model - Wikipedia

    en.wikipedia.org/wiki/Binomial_options_pricing_model

    In finance, the binomial options pricing model ( BOPM) provides a generalizable numerical method for the valuation of options. Essentially, the model uses a "discrete-time" ( lattice based) model of the varying price over time of the underlying financial instrument, addressing cases where the closed-form Black–Scholes formula is wanting.

  3. Bollinger Bands - Wikipedia

    en.wikipedia.org/wiki/Bollinger_Bands

    S&P 500 with 20-day, two-standard-deviation Bollinger Bands, %b and bandwidth. Bollinger Bands (/ ˈ b ɒ l ɪ n dʒ ər /) are a type of statistical chart characterizing the prices and volatility over time of a financial instrument or commodity, using a formulaic method propounded by John Bollinger in the 1980s.

  4. Volatility (finance) - Wikipedia

    en.wikipedia.org/wiki/Volatility_(finance)

    Volatility (finance) In finance, volatility (usually denoted by "σ") is the degree of variation of a trading price series over time, usually measured by the standard deviation of logarithmic returns . Historic volatility measures a time series of past market prices. Implied volatility looks forward in time, being derived from the market price ...

  5. Inverse floating rate note - Wikipedia

    en.wikipedia.org/wiki/Inverse_floating_rate_note

    An inverse floating rate note, or simply an inverse floater, is a type of bond or other type of debt instrument used in finance whose coupon rate has an inverse relationship to short-term interest rates (or its reference rate ). With an inverse floater, as interest rates rise the coupon rate falls. [1] The basic structure is the same as an ...

  6. Bond valuation - Wikipedia

    en.wikipedia.org/wiki/Bond_valuation

    v. t. e. Bond valuation is the process by which an investor arrives at an estimate of the theoretical fair value, or intrinsic worth, of a bond. As with any security or capital investment, the theoretical fair value of a bond is the present value of the stream of cash flows it is expected to generate. Hence, the value of a bond is obtained by ...

  7. Black model - Wikipedia

    en.wikipedia.org/wiki/Black_model

    The Black model (sometimes known as the Black-76 model) is a variant of the Black–Scholes option pricing model. Its primary applications are for pricing options on future contracts, bond options, interest rate cap and floors, and swaptions. It was first presented in a paper written by Fischer Black in 1976. Black's model can be generalized ...

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