Examlex
The payoff values on bond options are positively linked to the changes in interest rates.
Volatility
The statistical measure of the dispersion of returns for a given security or market index, often associated with the degree of risk involved.
Risk Premium
The additional return an investor demands for taking on additional risk above the risk-free rate.
Expected Rate
The expected rate refers to the forecasted return on an investment or the predicted growth rate of an asset over a specific period.
Standard Deviation
A statistical measure that quantifies the dispersion or variability of a set of data points or investment returns around their mean.
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