What Is Call Premium? Call premium is the dollar amount over the par value of a callable debt security that is given to holders when the security is redeemed early by the issuer. The call premium is also called the redemption premium. In options terminology, the call premium is the amount that the purchaser of
What Is a Call Price? The call price (also known as “redemption price”) is the price at which the issuer of a callable security has the right to buy back that security from an investor or creditor. Call prices are commonly found in callable bonds or callable preferred stock. The call price is set at the time
What Is a Call Provision? A call provision is a stipulation on the contract for a bond—or other fixed-income instruments—that allows the issuer to repurchase and retire the debt security. Call provision triggering events include the underlying asset reaching a preset price and a specified anniversary or other date being reached. The bond indenture will
What Is a Call Ratio Backspread? A call ratio backspread is an options spreading strategy that bullish investors use if they believe the underlying security or stock will rise by a significant amount while limiting losses. The strategy combines purchasing a greater number of call options in order to sell a lesser number of calls
What Is a Call Report? A call report is a regulatory report that must be filed by banks in the U.S. on a quarterly basis with the FDIC. A call report contains information about the bank’s financial health, and by examining multiple call reports it can provide insight regarding the welfare of the U.S. banking
What Is a Call Warrant? A call warrant is a financial instrument that gives the holder the right to buy the underlying stock shares at a specific price on or before a specified date. Call warrants are often included in a new equity or debt offering from a company. A call warrant’s purpose is to
What Is the Calmar Ratio? The Calmar ratio is a gauge of the performance of investment funds such as hedge funds and commodity trading advisors (CTAs). It is a function of the fund’s average compounded annual rate of return versus its maximum drawdown. The higher the Calmar ratio, the better it performed on a risk-adjusted
What Is CalPERS? The California Public Employees’ Retirement System, also known as CalPERS, is an organization that provides numerous benefits to its 2 million members, of which 38% are school members, 31% public agency members, and 31% state members. Benefits available to members include health insurance, long-term care insurance, death benefits, a mortgage program, and
What Is a Cambist? Cambist is an antiquated term that refers to a financial professional who is considered an expert in the international currency exchange markets. It is also sometimes used to refer to a reference manual that lists currency exchange values and other information useful for conducting international trade. Today, the term is mostly
What Is the CAMELS Rating System? CAMELS is a recognized international rating system that bank supervisory authorities use in order to rate financial institutions according to six factors represented by its acronym. Supervisory authorities assign each bank a score on a scale. A rating of one is considered the best, and a rating of five is
