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Al-Ibahah al-Asliyah

September 26, 2021
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Liquid Yield Option Note

September 26, 2021

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A parameter that measures the fatness of the tails of a probability distribution. It describes the shape of the probability density function (PDF) for a random variable. Originally, it is a Greek word which means “bulging”.

This parameter gives an indication whether the uppermost part of the distribution is is taller or shorter than the normal distribution curve, and also whether the tails are fatter or thinner than the normal curve.

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