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Risk-Free Interest Rate

The interest rate that would exist on a riskless asset/ investment/ security, given that expected inflation is zero. Such a...

RFR

It stands for risk-free rate; the interest rate that would exist on a riskless asset/ investment/ security, given that expected...

Risk-Free Rate

The interest rate that would exist on a riskless asset/ investment/ security, given that expected inflation is zero. Such a...

Synthetic Short

A combination of a short call and a long put in addition to a money market position (borrowing or lending…

Risk-Free Rate

The rate of interest which can be earned without bearing any risks. The rates on Treasury bills and Treasury bonds…

Vera

A second-order Greek that that relates the rate of change in a derivative's rho to changes in volatility. In other...

RHOVA

A second-order Greek that that relates the rate of change in a derivative's rho to changes in volatility. In other...

Rho

The rate of change in price of a derivative with respect to a change in the risk-free rate. This “Greek”...

Risk-Free Rate

The rate of return on a specific risk-free asset. In practice, analysts use government bond rates as a proxy for...

Jensen’s Measure

A return measure that differentiates between returns generated through active management and those which simply result from high betas during...