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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...

 Definition Covered call writing is either the simultaneous purchase of stock and the sale of a call option or the sale of a call option against a stock currently held by an investor. Generally,...

Cash settlement is a device used instead of physical deliveries to fulfill futures contract obligations upon contract maturity. In 1981, cash settlement was first applied to trading futures contracts in Eurodollar time deposits and...

With $4.0 trillion traded daily, currency future (FX future or foreign exchange future) markets represent the largest asset class in the world. Forex futures are used for currency price trend speculation as well as...

What is Pre-Approval A written commitment issued by a lender after a comprehensive analysis of the creditworthiness of the applicant, including verification of income, resources, and other such matters as is typically done as...

In the fast-paced world of financial markets, it is important to develop domain knowledge expertise in quantitative and qualitative analytical skills. Increasing volatility across global markets has necessitated a multidimensional approach for understanding the...

E-minis are stock market index futures contracts traded on the Chicago Mercantile Exchange’s Globex electronic trading platform. CME E-mini S&P 500 tracks the Standard & Poor’s 500 Index, the key benchmark for large-capitalization U.S. stocks...

Mortgage life insurance is purchased in order to guarantee that any outstand­ing mortgage debt you may have at the time of your death will be paid off in full. Types of Mortgage Life Insurance...

Critical Illness Insurance is the financial safety net should you suffer from a critical illness. Critical illness coverage provides benefits that are paid upon the diagnosis of a critical illness such as cancer, heart...

Participating in an employee stock purchase plan (ESPP) can be an important part of employee’s overall financial strategy. ESPPs enable you to invest in your company by purchasing shares of your company’s stock, usually...

Adjustable-rate mortgages (ARMs) are loans with interest rates that change. ARMs may start with lower monthly payments than fixed rate mortgages An adjustable-rate mortgage differs from a fixed-rate mortgage in many ways. Most importantly,...

A viatical settlement is an arrangement between the owner of an insurance policy (the viator) and a third party (the provider). The provider negotiates with the viator for the purchase of his/her life insurance...

Financial turmoil began in August 2007 when asset-backed securities, particularly those backed by subprime mortgages, suddenly became illiquid and fell sharply in value as an unprecedented housing boom turned to a housing bust. The...

Whether you are borrowing money to make a large purchase or depositing your money in a financial institution so you can make money (e.g., savings account, certificate of deposit), you will need a basic...

The London Interbank Offered Rate is a daily reference rate based on the interest rates at which banks borrow unsecured funds from other banks in the London wholesale money market (or interbank market). Alternatively,...