Option writer and RFR: Difference between pages

Revision as of 18:33, 1 December 2018

Risk-Free Rate.

The abbreviation 'RFR' usually refers to risk-free benchmark interest rates, such as SONIA.

Also known as near risk-free rates, recognising that such rates are never entirely risk-free.

Theoretically risk free rates of investment return, for example in the Capital asset pricing model, are more often designated by 'Rf' or 'rf'.

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-An option writer is the party which undertakes the obligation - in exchange for a premium - to deal with the option holder if the holder chooses to exercise the option.
+Risk-Free Rate.
+The abbreviation 'RFR' usually refers to risk-free benchmark interest rates, such as SONIA.
-Also called an option seller.
+Also known as ''near'' risk-free rates, recognising that such rates are never entirely risk-free.
-== See also ==
+Theoretically risk free rates of ''investment'' return, for example in the Capital asset pricing model, are more often designated by 'Rf' or 'rf'.
-* [[Option holder]]
+==See also==
+*[[Capital asset pricing model]]
+*[[RFR WG]]
+*[[Risk-free rate of return]]
+*[[Risk-free rates]]
+*[[SONIA]]
+[[Category:Corporate_financial_management]]
 [[Category:Financial_products_and_markets]]