Meaning CERTAINTY EQUIVALENT: An amount that would be accepted today (risk free) in lieu of a chance to receive a possibly higher, but uncertain, amount
More terms such as Certainty equivalent in Dictionary C.
- Definition Call Swaption:
- Examples A swaption in which the buyer has the right to enter into a swap as a fixed-rate payer. The writer therefore becomes the fixed-rate receiver/floating-rate payer certainty equivalent definition.
- Definition Contingency Order:
- Examples In the context of general equities, order to buy one security, if the trader can sell another, usually given that certain price limits or conditions reach a certain level. Swap, switch order certainty equivalent explain.
- Definition Convention Statement:
- Examples filed by a life insurance company in each state where it does business in compliance with that state's regulations. The statement and supporting documents show, among other things, the assets certainty equivalent what is.
- Definition Convenience Yield:
- Examples The extra advantage that firms derive from holding the commodity rather than a future position certainty equivalent meaning.
- Definition Capital Market Imperfections View:
- Examples issuing debt is generally valuable, but that the firm's optimal choice of capital structure involves various other views of capital structure (net corporate/personal tax, agency cost, bankruptcy certainty equivalent abbreviation.
