Time Value
Financial Statements
Rates
Derivatives
Abbreviations
100
PV = FV * (1+ i)n
What is the formula for present value
100
A thorough description of a company's financial condition.
What is Management's Discussion and Analysis?
100
The rate of interest banks charge their best borrowers.
What is the prime rate?
100
This gives the holder the right, but not the obligation, to buy or sell a specified asset.
What is an option?
100
Generally accepted accounting principles.
What is GAAP?
200
A series of payments.
What is an annuity?
200
This statement provides a snapshot of a company's financial position.
What is a balance sheet?
200
The rate of interest that London banks charge each other for short term loans.
What is LIBOR?
200
The right to buy the underlying asset.
What is a call option.
200
Credit default swaps.
What is CDS?
300
The erosion of a dollar's purchasing power.
What is inflation?
300
Anything a company owns that has value.
What is an asset?
300
The interest rate at which depository institutions lend funds to other depository institutions.
What is the fed funds rate?
300
The right to sell the underlying asset.
What is a put option.
300
Present value
What is PV?
400
The value of a current sum of money on some future date.
What is future value?
400
The ability to convert an asset into cash.
What is liquidity?
400
The rate of interest a Federal Reserve Bank's lending facility charges other banks.
What is the discount rate?
400
A long term equity anticipation security.
What is a LEAP?
400
DCF
What is discounted cash flow?
500
The cash flows in an ordinary annuity occur at the end of each period.
What is in arrears?
500
The historical cost of an asset.
What is book value?
500
The interest rate on an outstanding bond competitive with the current market rate on a similar, newly issued bonds.
What is yield to maturity?
500
An agreement that obligates the purchaser to purchase, and the seller to sell, at a specified price on a specified date.
What is a forward contract?
500
LIBOR
What is the London Interbank Offered Rate?
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