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Global Market Risk Premium

A market risk premium (MRP) that takes into account the forces of capital market convergence and globalization. However, not all...

Global MRP

A market risk premium (MRP) that takes into account the forces of capital market convergence and globalization. However, not all...

Percentage Premium

The difference between the bond’s price and its equity value or parity, expressed as a percentage: Premium = (convertible price-...

Step Payment Option

A standard option where part or all of the premium is deferred, depending on the spot price reaching preset triggers...

Step Premium Option

A contingent premium option where the holder pays no upfront premium. However, the premium gets paid in a series of...

Conversion Premium

The percentage by which the conversion price (in a convertible) exceeds the current stock price. The following equation illustrates this:...

Insurance Pricing

The process whereby an insurer (insurance company) determines premium rates in a level adequate to cover and account for expected...

Rate Making

The process whereby an insurer (insurance company) determines premium rates in a level adequate to cover and account for expected...

ROL

It stands for rate on line; a measure of an insurance or reinsurance company's gross profitability, which relates insurance premiums...

Rate on Line

A measure of an insurance or reinsurance company's gross profitability, which relates insurance premiums to the line (line amount: insurance...