Risk Free

Some articles on risk, risk free:

Single-stock Futures - Pricing
... price) of the underlying stock, r is the annualized risk-free interest rate, PV(Div) is the present value of an expected dividend, t is the present time, and T is the time when the contract expires ... When the risk-free rate is expressed as a continuous return, the contract price is where S is the stock price, PV(Div) is the Present value of any dividends generated by the underlying stock ...
Beta (finance) - Extreme and Interesting Cases
... Some zero-beta assets are risk-free, such as treasury bonds and cash ... However, simply because a beta is zero does not mean that it is risk-free ... The correlation with the market will be zero, but it is certainly not a risk-free endeavor ...
Subprime Crisis Background Information - Understanding The Events of September 2008 - Key Risk Indicators
... Key risk indicators became highly volatile during September 2008, a factor leading the U.S ... The “TED spread” is a measure of credit risk for inter-bank lending ... It is the difference between 1) the risk-free three-month U.S ...
Real Options Valuation - Limitations - Technical Considerations
... c) When hedging of this sort is possible, since delta hedging and risk neutral pricing are mathematically identical, then risk neutral valuation may be applied ... Standard option models (a) Assume that the risk characteristics of the underlying do not change over the life of the option, usually expressed via a constant volatility assumption ... (b) Hence a standard, risk free rate may be applied as the discount rate at each decision point, allowing for risk neutral valuation ...
Rational Pricing - Arbitrage Mechanics - An Asset With A Known Future-price
... An asset with a known price in the future, must today trade at that price discounted at the risk free rate ... question are the asset to be delivered and the risk free asset ... cashes in the matured investment, which has appreciated at the risk free rate ...

Famous quotes containing the words free and/or risk:

    Some are “industrious,” and appear to love labor for its own sake, or perhaps because it keeps them out of worse mischief; to such I have at present nothing to say. Those who would not know what to do with more leisure than they now enjoy, I might advise to work twice as hard as they do,—work till they pay for themselves, and get their free papers.
    Henry David Thoreau (1817–1862)

    Man is so muddled, so dependent on the things immediately before his eyes, that every day even the most submissive believer can be seen to risk the torments of the afterlife for the smallest pleasure.
    Joseph De Maistre (1753–1821)