Metric and Negative cost collar: Difference between pages

From ACT Wiki
(Difference between pages)
Jump to navigationJump to search
imported>Administrator
(CSV import)
 
imported>Doug Williamson
m (Expand to say "collar" provider's "expected" profit, and categorise the page.)
 
Line 1: Line 1:
1. ''Noun''. A measureThe term is often used in the context of shareholder value managementA value-based metric is a performance measure which is linked in a direct and understandable way with the creation of value for shareholders.
''Risk management''.  
A type of options hedging structure in which the net premium payable by the hedger is negative.  
   
In other words, the net premium is an amount receivable by the hedger.   
 
The collar provider's expected profit - and the true cost to the hedger - is embedded within the related strike prices of the options from which the collar is constructed.


2. ''Adjective''. In a wider and non-financial context the metric system of measurement is a decimal system based on the metre.


== See also ==
== See also ==
* [[Shareholder value]]
* [[Collar hedge]]
* [[Hedging]]


[[Category:Manage_risks]]
[[Category:Manage_risks]]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]

Latest revision as of 15:03, 30 June 2014

Risk management.

A type of options hedging structure in which the net premium payable by the hedger is negative.

In other words, the net premium is an amount receivable by the hedger.

The collar provider's expected profit - and the true cost to the hedger - is embedded within the related strike prices of the options from which the collar is constructed.


See also