What is Expected Value?
The Expected Value is the weighted average of the possible outcomes of a random variable, where the weights are the p...
What is a Forward Contract?
A forward contract is a non-standardised contract between two counterparties without the involvement of an exchange.
What is Standard Error?
The Standard deviation of the mean is known as a Standard Error.
What are Put Options?
Put options gives owner the right, but not the obligation, to sell the underlying assets against the premium paid at ...
Value at Risk – Methods with Example
Value at risk is a statistic that quantifies the extent of possible financial losses within a firm, portfolio, or pos...
What are Call Options?
Call options are financial contracts that give the option buyer the right but not the obligation to buy at a specifie...
Mutually Exclusive Events
If two events cannot occur at the same time, they are mutually exclusive. Imagine the possible outcomes of one die ro...
Coefficient of Determination
The coefficient of determination (𝑹^2 ) of multiple regression is a goodness of fit measure
What is LIBOR ?
LIBOR is the average interbank interest rate at which a selection of banks on the London money market are prepared to...