Neutral: Difference between revisions
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* [[Net zero]] | * [[Net zero]] | ||
* [[Neutral interest rate]] | * [[Neutral interest rate]] | ||
* [[Neutrality]] | |||
* [[Risk management]] | * [[Risk management]] | ||
* [[Risk neutral valuation]] | * [[Risk neutral valuation]] |
Latest revision as of 21:47, 24 March 2023
1. Impact.
An action or policy having no effect on a measure under review, having no net effect on it, or intended to have no net effect on it.
For example, carbon-neutral or neutral interest rate.
2. Risk management - hedging.
A position that is considered to be hedged against changes in a market rate or price, or other market-related variable.
For example, delta neutral or vega neutral.
3. Financial reporting.
Financial amounts reported on an adjusted basis to remove distortions and aid comparability.
For example, FX-neutral financial amounts.
4. Valuation or policy basis.
A basis of valuation or decision making that is independent of the variable mentioned.
For example, risk neutral valuation methods.