|Liquid yield option note (LYON)|
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Definition of Liquid yield option note (LYON)
Liquid yield option note (LYON)
Zero-coupon, callable, putable, convertible bond invented by Merrill
Liquid yield option note (LYON)
Zero-coupon, callable, putable, convertible bond invented by Merrill Lynch & Co.
The option of terminating an investment earlier than originally planned.
The ease and quickness with which assets can be converted to cash.
An option that may be exercised at any time up to and including the expiration date.
An option that can be exercised any time until its
An option contract that can be exercised at any time between the date of purchase and
The effective, or true, annual rate of return. The APY is the rate actually
yield curve option-pricing models.
option based on the average price of the asset during the life of the option.
notes issued by states and municipalities to obtain interim financing for
Gives the lessee the option to purchase the asset at a price below fair market
Contracts with trigger points that, when crossed, automatically generate buying or selling of
Packages that involve the exchange of more than two currencies against a base currency at
An option pricing model in which the underlying asset can take on only two
A model for pricing call options based on arbitrage arguments that uses
Bond yield calculated on an annual percentage rate method. Differs from annual
The annualized yield to maturity computed by doubling the semiannual yield.
Bond Equivalent Yield
Bond yield calculated on an annual percentage rate method
cafeteria plan a “menu” of fringe benefit options that include
cash or nontaxable benefits
Call an option
To exercise a call option.
An option contract that gives its holder the right (but not the obligation) to purchase a specified
A contract that gives the holder the right to buy an asset for a
Right to buy an asset at a specified exercise price on or before the exercise date.
Capital gains yield
The price change portion of a stock's return.
option on an option.
The extra advantage that firms derive from holding the commodity rather than the future.
Coupon equivalent yield
True interest cost expressed on the basis of a 365-day year.
Covered or hedge option strategies
Strategies that involve a position in an option as well as a position in the
An option to buy or sell a foreign currency.
For bonds or notes, the coupon rate divided by the market price of the bond.
Annual coupon payments divided by bond price.
The percentage return on a financial asset based on the current price of the asset, without reference to any expected change in the price of the asset. This contrasts with yield-to-maturity, for which the calculation includes expected price changes. See also yield.
Over-the-counter options, such as those offered by government and mortgage-backed
The options available to the seller of an interest rate futures contract, including the quality
Demand master notes
Short-term securities that are repayable immediately upon the holder's demand.
Dividend yield (Funds)
Indicated yield represents return on a share of a mutual fund held over the past 12
dividend yield ratio
Cash dividends paid by a business over the most
Dividend yield (Stocks)
Indicated yield represents annual dividends divided by current stock price.
Documented discount notes
Commercial paper backed by normal bank lines plus a letter of credit from a
A sinking fund provision that may allow repurchase of twice the required number of bonds
Barrier option that comes into existence if asset price hits a barrier.
Barrier option that expires if asset price hits a barrier.
The ratio of earnings per share after allowing for tax and interest payments on fixed interest
Effective annual yield
Annualized interest rate on a security computed using compound interest techniques.
Effective Annual Yield
Annualized rate of return on a security computed using compound
Elasticity of an option
Percentage change in the value of an option given a 1% change in the value of the
An option that is part of the structure of a bond that provides either the bondholder or
Securities that give the holder the right to buy or sell a specified number of shares of stock, at
Equivalent bond yield
Annual yield on a short-term, non-interest bearing security calculated so as to be
Equivalent taxable yield
The yield that must be offered on a taxable bond issue to give the same after-tax
Escalating Price Option
A nonqualified stock option that uses a sliding scale for
Euro-medium term note (Euro-MTN)
A non-underwritten Euronote issued directly to the market. Euro-
Short- to medium-term debt instrument sold in the Eurocurrency market.
option that may be exercised only at the expiration date. Related: american option.
An option that can be exercised only on its expiration date.
An option contract that can only be exercised on the expiration date.
Exercising the option
The act buying or selling the underlying asset via the option contract.
A variety of options available to an investor to recover their invested capital and the return on their investment.
note the maturity of which can be extended by mutual agreement of the issuer and
Flattening of the yield curve
A change in the yield curve where the spread between the yield on a long-term
note that allows investors to switch between two different types of debt.
Floating-rate note (FRN)
note whose interest payment varies with short-term interest rates.
Foreign currency option
An option that conveys the right to buy or sell a specified amount of foreign
An option on a futures contract. Related: options on physicals.
Garmen-Kohlhagen option pricing model
A widely used model for pricing foreign currency options.
option that allows the underwriter for a new issue to buy and resell additional shares.
Heavenly Parachute Stock Option
A nonqualified stock option that allows a deceased option holder’s estate up to three years in which to exercise his or her
Incentive Stock Option
An option to purchase company stock that is not taxable
Index and Option Market (IOM)
A division of the CME established in 1982 for trading stock index
A call or put option based on a stock market index.
The yield, based on the most recent quarterly rate times four. To determine the yield, divide
One of several investment accounts in which your premiums may be invested within your life insurance policy.
Intrinsic value of an option
The amount by which an option is in-the-money. An option which is not in-themoney
Inverse floating rate note
A variable rate security whose coupon rate increases as a benchmark interest rate declines.
Involuntary liquidation preference
A premium that must be paid to preferred or preference stockholders if
Irrational call option
The implied call imbedded in the MBS. Identified as irrational because the call is
labor yield variance
(standard mix X actual hours X standard rate) - (standard mix X standard hours X standard rate);
A reduction in the physical quantity of an inventory that is accounted for
Asset that is easily and cheaply turned into cash - notably cash itself and short-term securities.
Payment by a firm to its owners from capital rather than from earnings.
When a firm's business is terminated, assets are sold, proceeds pay creditors and any leftovers
The process of selling off all the assets of a business entity, settling its liabilities,
Sale of bankrupt firm’s assets.
The rights of a firm's securityholders in the event the firm liquidates.
Net amount that could be realized by selling the assets of a firm after paying the debt.
The net proceeds (after taxes and expenses) of selling the assets
Net proceeds that would be realized by selling the firm’s assets and paying off its creditors.
Person appointed by unsecured creditors in the United Kingdom to oversee the sale of an
A market is liquid when it has a high level of trading activity, allowing buying and selling with
A measure of the ability of a business to pay its debts as they fall due – see also working capital.
A term that means nearness to cash; the closer an asset is to becoming cash or a liability is to using cash, the more liquid that asset or liability is.
The ease with which assets or securities can be sold for cash on
Ability of an asset to be converted to cash quickly at low cost.
Ease with which an asset can be sold on short notice at a fair price.
The degree to which an asset can be cheaply and quickly turned into money.
Situation in which a firm is unable to meet due bills; a period of "technical insolvency".
Investing in a variety of maturities to reduce the price risk to which holding long
Liquidity preference hypothesis
The argument that greater liquidity is valuable, all else equal. Also, the
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