What Is a Put Swaption? A put swaption, or put swap option, is a position on an interest rate swap that gives an entity the right to pay a fixed rate of interest and receive a floating rate of interest from the swap counterparty. Put swaptions are used by those entities seeking to earn floating
What Is Put to Seller? “Put to seller” describes the process of a put option being exercised. The put writer becomes responsible for receiving the underlying shares from the put buyer at the strike price since being long a put gives the holder the right to sell the underlying asset. Put to seller usually occurs when the put’s
What Is a Put Warrant? A put warrant is a type of security that gives the holder the right, but not the obligation, to sell a given quantity of an underlying asset for a specified price on or before a preset date. A put warrant is a company-issued option to sell back to the issuer
What Is PV10? PV10 is a calculation of the present value of estimated future oil and gas revenues, net of forecasted direct expenses, and discounted at an annual rate of 10%. The resulting figure is used in the energy industry to estimate the value of a corporation’s proven oil and gas reserves. Key Takeaways PV10
What Is P-Value? In statistics, the p-value is the probability of obtaining results at least as extreme as the observed results of a statistical hypothesis test, assuming that the null hypothesis is correct. The p-value serves as an alternative to rejection points to provide the smallest level of significance at which the null hypothesis would be rejected.
What Does Price Value of a Basis Point Mean? Price value of a basis point (PVBP) is a measure used to describe how a basis point change in yield affects the price of a bond. Price value of a basis point is also known as the value of a basis point (VBP), dollar value of
What Is the Present Value Interest Factor (PVIF)? The present value interest factor (PVIF) is a formula used to estimate the current worth of a sum of money that is to be received at some future date. PVIFs are often presented in the form of a table with values for different time periods and interest
What Is the Present Value Interest Factor of an Annuity? The present value interest factor of an annuity is a factor that can be used to calculate the present value of a series of annuities when it is multiplied by the recurring payment amount. The initial deposit earns interest at the interest rate (r), which perfectly
What Is a Pyrrhic Victory? A Pyrrhic victory is a success that comes with great losses or unacceptable costs. The term may be used to describe a business move that has costs that far exceed its rewards, such as an extravagantly expensive hostile takeover bid. Key Takeaways A Pyrrhic victory comes at an unacceptably high
What Is the Problem Loan Ratio? The problem loan ratio is a ratio in the banking industry that compares the percentage of problem loans to the percentage of sound loans. In the banking and credit markets, a problem loan is one of two things: a commercial loan that is at least 90 days past due
