Covered Call Writing Strategy Refer: covered/ hedge option strategy. Investment strategy that encompasses writing call options on securities owned by the investor. … [Read more...]
Covered Interest Arbitrage
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Covered Interest Arbitrage Hedge strategy used by portfolio manager by investing dollars in a foreign currency denominated instrument and hedging the foreign exchange risk with a sale (for dollars) of the proceeds generated by the investment forward. … [Read more...]
Covered or Hedge Option Strategies
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Covered or Hedge Option Strategies Refer: naked strategies. An investment strategy that involves taking a position in the option and the underlying stock, to balance unfavorable price movement in one with gains in the other. … [Read more...]
Covered Put
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Covered Put Position in a put option where writer of the option also has a short position on the stock. Else the writer may have deposited cash or equivalents matching the option exercise into a cash account. This restricts the risk of the option writer. If option holder exercises … [Read more...]
Cramdown
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Cramdown Bankruptcy court’s powers to confirm a reorganization program in spite of objections arising from creditors of some classes. … [Read more...]
Crawling Peg
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Crawling Peg Exchange rate revision system that is automatic and works by setting a par value and a given percent within which limits the rate can fluctuate. Regular revision of the par value take place by authorities in accordance with their formula. … [Read more...]
Credible Signal
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Credible Signal Indicator or signal that gives accurate information, and can differentiate among originators. … [Read more...]
Credit Analysis
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Credit Analysis Refer: default risk. Assessment of a company or bond issue to determine the capacity of the issuer to fulfill all payment obligations by analyzing all available information pertaining to it. … [Read more...]
Credit Enhancement
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Credit Enhancement Buying an established insurance company’s financial guarantee for the purpose of raising cash. … [Read more...]
Credit Period
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Credit Period Time period over which credit is granted to a customer. … [Read more...]
Credit Risk
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Credit Risk Refer: default risk. Risk arising from the possibility of default by a borrower or a debt security issuer or from the failure to make payment on negotiable instruments. … [Read more...]
Credit Scoring
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Credit Scoring Technique used in statistics where many financial attributes are grouped to create a single score that indicates the creditworthiness of a customer. … [Read more...]
Credit Spread
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Credit Spread Refer: Quality spread. Value of sold derivative less value of purchased derivative. … [Read more...]
Crediting rate
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Crediting rate Rate of interest offered on an insurance policy that doubles as investment. … [Read more...]
Cross Default
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Cross Default Arrangement wherein default occurring on one debt obligation prompts default on another. … [Read more...]
Cross Hedging
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Cross Hedging Hedging technique that involves taking a position on a commodity different from the one underlying the hedged futures contract. … [Read more...]
Cross Holdings
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Cross Holdings Shares belonging to one firm held by another corporation. … [Read more...]
Cross Rates
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Cross Rates Rate of exchange in force over two currencies represented as a ratio. The ratio uses a third currency to compare the two currency exchange rates. … [Read more...]
