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Financial Terms | |
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.
Related Terms:Abandonment optionThe option of terminating an investment earlier than originally planned. Accounting liquidityThe ease and quickness with which assets can be converted to cash. American optionAn option that may be exercised at any time up to and including the expiration date. American optionAn option that can be exercised any time until its American-style optionAn option contract that can be exercised at any time between the date of purchase and Annual percentage yield (APY)The effective, or true, annual rate of return. The APY is the rate actually ![]() Arbitrage-free option-pricing modelsyield curve option-pricing models. Asian optionoption based on the average price of the asset during the life of the option. BAN (Bank anticipation notes)notes issued by states and municipalities to obtain interim financing for Bargain-purchase-price optionGives the lessee the option to purchase the asset at a price below fair market Barrier optionsContracts with trigger points that, when crossed, automatically generate buying or selling of Basket optionsPackages that involve the exchange of more than two currencies against a base currency at Binomial option pricing modelAn option pricing model in which the underlying asset can take on only two Black-Scholes option-pricing modelA model for pricing call options based on arbitrage arguments that uses Bond equivalent yieldBond yield calculated on an annual percentage rate method. Differs from annual Bond-equivalent yieldThe annualized yield to maturity computed by doubling the semiannual yield. Bond Equivalent YieldBond yield calculated on an annual percentage rate method cafeteria plan a “menu” of fringe benefit options that includecash or nontaxable benefits Call an optionTo exercise a call option. Call optionAn option contract that gives its holder the right (but not the obligation) to purchase a specified Call OptionA contract that gives the holder the right to buy an asset for a call optionRight to buy an asset at a specified exercise price on or before the exercise date. Capital gains yieldThe price change portion of a stock's return. Compound optionoption on an option. Convenience yieldThe extra advantage that firms derive from holding the commodity rather than the future. Coupon equivalent yieldTrue interest cost expressed on the basis of a 365-day year. Covered or hedge option strategiesStrategies that involve a position in an option as well as a position in the Currency optionAn option to buy or sell a foreign currency. Current yieldFor bonds or notes, the coupon rate divided by the market price of the bond. current yieldAnnual coupon payments divided by bond price. Current YieldThe 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. Dealer optionsOver-the-counter options, such as those offered by government and mortgage-backed Delivery optionsThe options available to the seller of an interest rate futures contract, including the quality Demand master notesShort-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 ratioCash dividends paid by a business over the most Dividend yield (Stocks)Indicated yield represents annual dividends divided by current stock price. Documented discount notesCommercial paper backed by normal bank lines plus a letter of credit from a Doubling optionA sinking fund provision that may allow repurchase of twice the required number of bonds Down-and-in optionBarrier option that comes into existence if asset price hits a barrier. Down-and-out optionBarrier option that expires if asset price hits a barrier. Earnings yieldThe ratio of earnings per share after allowing for tax and interest payments on fixed interest Effective annual yieldAnnualized interest rate on a security computed using compound interest techniques. Effective Annual YieldAnnualized rate of return on a security computed using compound Elasticity of an optionPercentage change in the value of an option given a 1% change in the value of the Embedded optionAn option that is part of the structure of a bond that provides either the bondholder or Equity optionsSecurities that give the holder the right to buy or sell a specified number of shares of stock, at Equivalent bond yieldAnnual yield on a short-term, non-interest bearing security calculated so as to be Equivalent taxable yieldThe yield that must be offered on a taxable bond issue to give the same after-tax Escalating Price OptionA 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- Euro-noteShort- to medium-term debt instrument sold in the Eurocurrency market. European optionoption that may be exercised only at the expiration date. Related: american option. European optionAn option that can be exercised only on its expiration date. European-style optionAn option contract that can only be exercised on the expiration date. Exercising the optionThe act buying or selling the underlying asset via the option contract. Exit OptionsA variety of options available to an investor to recover their invested capital and the return on their investment. Extendable notesnote the maturity of which can be extended by mutual agreement of the issuer and Flattening of the yield curveA change in the yield curve where the spread between the yield on a long-term Flip-flop notenote 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 optionAn option that conveys the right to buy or sell a specified amount of foreign Futures optionAn option on a futures contract. Related: options on physicals. Garmen-Kohlhagen option pricing modelA widely used model for pricing foreign currency options. Greenshoe optionoption that allows the underwriter for a new issue to buy and resell additional shares. Heavenly Parachute Stock OptionA nonqualified stock option that allows a deceased option holder’s estate up to three years in which to exercise his or her High-yield bondSee:junk bond. Incentive Stock OptionAn 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 Index optionA call or put option based on a stock market index. Indicated yieldThe yield, based on the most recent quarterly rate times four. To determine the yield, divide Interest OptionOne of several investment accounts in which your premiums may be invested within your life insurance policy. Intrinsic value of an optionThe amount by which an option is in-the-money. An option which is not in-themoney Inverse floating rate noteA variable rate security whose coupon rate increases as a benchmark interest rate declines. Involuntary liquidation preferenceA premium that must be paid to preferred or preference stockholders if Irrational call optionThe 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); LIFO LiquidationA reduction in the physical quantity of an inventory that is accounted for Liquid assetAsset that is easily and cheaply turned into cash - notably cash itself and short-term securities. Liquidating dividendPayment by a firm to its owners from capital rather than from earnings. LiquidationWhen a firm's business is terminated, assets are sold, proceeds pay creditors and any leftovers LiquidationThe process of selling off all the assets of a business entity, settling its liabilities, liquidationSale of bankrupt firm’s assets. Liquidation rightsThe rights of a firm's securityholders in the event the firm liquidates. Liquidation valueNet amount that could be realized by selling the assets of a firm after paying the debt. Liquidation ValueThe net proceeds (after taxes and expenses) of selling the assets liquidation valueNet proceeds that would be realized by selling the firm’s assets and paying off its creditors. LiquidatorPerson appointed by unsecured creditors in the United Kingdom to oversee the sale of an LiquidityA market is liquid when it has a high level of trading activity, allowing buying and selling with LiquidityA measure of the ability of a business to pay its debts as they fall due – see also working capital. LiquidityA 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. LiquidityThe ease with which assets or securities can be sold for cash on liquidityAbility of an asset to be converted to cash quickly at low cost. LiquidityEase with which an asset can be sold on short notice at a fair price. LiquidityThe degree to which an asset can be cheaply and quickly turned into money. Liquidity CrisisSituation in which a firm is unable to meet due bills; a period of "technical insolvency". Liquidity diversificationInvesting in a variety of maturities to reduce the price risk to which holding long Liquidity preference hypothesisThe argument that greater liquidity is valuable, all else equal. Also, the Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |