Abutterfly spreadconsists of options at three strikes, equally spaced apart, wherein all options are of the same type (either all calls or all puts) and have the same expiration. In a long butterfly, the middle strike option is sold and the outside strikes are bought in a ratio of 1...
What Is Net Profit Margin? Net profit margin, or simply net margin, measures how muchnet incomeor profit a company generates as a percentage of its revenue. It is the ratio of net profits torevenuesfor a company or business segment. ...
Option adjusted spread is the value of the spread of the rate of fixed income security and the risk-free return rate that is adjusted to account for...Become a member and unlock all Study Answers Start today. Try it now Create an account Ask a question Our experts can answer your ...
Return on investment, or ROI, is a mathematical formula that investors can use to evaluate their investments and judge how well a particular investment has performed compared to others. An ROI calculation is sometimes used with other approaches to develop a business case for a given proposal. Th...
Factors that influence the cost of PMI Yourcredit score:Your credit score plays a major role in the cost of PMI. In general, the higher your score, the lower your PMI cost. Yourloan-to-value (LTV) ratio:The LTV ratio measures the percentage of the home’s purchase price you’re financ...
Both ETFs and mutual funds have an "expense ratio," which is essentially the cost of being invested. For example, if you have an ETF with a 0.18% expense ratio on a $1,000 investment, you're paying $1.80 in fees a year. Because of an ETF's structure, their administrative costs tend...
What is a good debt-to-income ratio? For conventional loans, most lenders focus on your back-end ratio — the overall tally of your debts vis-à-vis your income. Most conventional loans allow for a DTI ratio of no more than 45 percent, but some lenders will accept ratios as high as ...
The most common types of resolutions are 720p (HD), 1080p (FHD) and 4K (UHD). Each has its own advantages and disadvantages depending on your viewing preferences. 720p (HD):HD has a resolution of 1280x720 with an aspect ratio of 16:9. This is considered standard definition and is ...
The accounting rate of return (ARR) formula divides an asset's average revenue by the company's initial investment to derive the ratio or return generated from the net income of the proposed capital investment. Key Takeaways The accounting rate of return (ARR) helps determine the rate of retu...
is fixed for the life of the bond and an inflation rate that is adjusted each May and November based on changes in the non-seasonally adjusted consumer price index for all urban consumers (CPI-U).2I bonds are issued at a fixed interest rate for up to 30 years, plus a variable ...