If we think of options, then the delta is a measure of movement relatuve to the underlying asset movement.
It would also provide shorting opportunities without having to own the underlying asset.
Vega measures the amount of movement in the option for a 1% move in the volatility of the underlying asset.
You have to stay close to the underlying asset in order to take advantage of the returns of that asset.
Streetwalker has compiled a table of five REITs selling at big discounts to their net underlying asset values that are likely targets.
Gas production worth close to spit, has been used to leverage and enhance positions far beyond credible valuations of the underlying asset.
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This is a measure of how much the price of an option will move for a 1% move in the value of the underlying asset.
Metals markets are particularly attractive for sharp operators because, unlike some other commodities, or equities, the underlying asset can be stored indefinitely without spoilage or change.
Vega: the Greek that most folks then want to become familiar is Vega or options sensitivity to a 1% move in the volatility of the underlying asset.
It is possible that the ETF could go broke and the shareholders could lose their investment while the underlying asset that is mirrored by the ETF continues to appreciate.
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As with financial options, the longer the option lasts before it expires and the more volatile the price of the underlying asset in this case, oil the more the option is worth.
Derivatives are financial instruments whose value is based on some underlying asset, like a mortgage for instance, and and can be used to either hedge risk or for completely speculative positions.
The volatility of the underlying asset can be difficult to measure or guess, especially since it is not always clear what it is if, for example, it is yet to be invented.
All things equal, the most important determinant of an option's price is the implied volatility of the underlying asset over the life of the option how much it is likely to bump around.
Why were financial statements for Alipay still being consolidated by Alibaba Group after August 2010 even though the underlying asset was transferred to another company, and therefore how reliable are its consolidated statements?
Morgan Stanley's REIT Index is down 24% so far this year, and most REITs sell at an average of close to 10% discount to their net underlying asset values, according to Jon Fosheim of Green Street Advisors.
While long trades have a limited downside the trader can only lose the money he invested losses from short sales can theoretically balloon towards infinity, as each dollar increase in the price of the underlying asset multiplies the trader's loss.
The fund currently trades at an approximate 20% discount to the underlying net asset value of its portfolio.
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The portfolio currently trades at a 10.5% discount to the underlying net asset value of its portfolio holdings.
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These instruments are called 'derivatives' because they derive from an underlying financial asset - in this case, share prices.
Their shares are at near-record 19% average discounts to underlying net asset values.
Stripping out the impact of oil price fluctuations and asset sales, underlying earnings grew 2 percent, the company said in a statement.
Under the law, an innocent third party generally can't seek an asset's return until the underlying criminal case is resolved, which can take time.
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While it may appear the gold market sometimes reacts in a bearish fashion to any flare-up in the EU debt crisis on a day-to-day basis, by following other commodity markets lower, the overall EU debt and financial crisis is a major underlying bullish fundamental for the safe-haven asset gold.
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While it may appear the gold market sometimes reacts in a bearish fashion to any flare-up in the EU debt crisis on a day-to-day basis, by following other commodity markets lower, it can be argued the overall EU debt and financial crisis is a major underlying bullish fundamental for the safe-haven asset gold.
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The biggest difference is that index funds operate in the way all mutual funds do, in that they are priced at the close of the trading day based on the net asset value (NAV) of the underlying securities.
Among the largest underlying components of RWX, in trading today Brookfield Asset Management ( Toronto: BAM-A) is down about 0.3%, RioCan Real Estate Investment Trust ( Toronto: REI-UN) is up about 0.2%, and Brookfield Office Properties Inc ( Toronto: BPO) is relatively unchanged.
He looks for shares trading at discounts to what their underlying property is worth, that is, the net asset value.
These hard asset investments include companies that own and produce an underlying natural resource.
Underlying production of oil and gas, excluding the impact of asset sales, rose 2% in the quarter compared with the same period a year ago.
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