Datasets:
sohomghosh
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FinRAD_Financial_Readability_Assessment_Dataset

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1
terms
stringlengths
1
156
definitions
stringlengths
3
4.2k
source
stringclasses
15 values
assigned_readability
int64
0
1
flesch_reading_ease
float64
-301.79
121
flesch_kincaid_grade
float64
-3.5
55.6
smog_index
float64
0
26.5
coleman_liau_index
float64
-33.81
51.4
automated_readability_index
float64
-6.9
65
dale_chall_readability_score
float64
0.1
35.3
linsear_write_formula
float64
-0.5
73
gunning_fog
float64
0.4
56
Chooser Option
An option where the holder has the right to choose whether it is a call or a put at some point during its life.
opod
0
89.42
6.8
0
4.07
7.9
6.14
12
9.6
Class of Options
See Option Class.
opod
0
93.81
0.9
0
1.52
3.6
9.05
0.5
1.2
Clean Price of Bond
The quoted price of a bond. The cash price paid for the bond (or dirty price) is calculated by adding the accrued interest to the clean price.
opod
0
83.15
5
0
6.2
5.6
7.81
6.75
8.36
Clearing House
A firm that guarantees the performance of the parties in a derivatives transaction (also referred to as a clearing corporation).
opod
0
34.26
13.5
0
13.46
14.2
11.73
15
18
Clearing Margin
A margin posted by a member of a clearinghouse.
opod
0
62.34
6.8
0
5.42
3.5
9.35
4.5
8.04
Cliquet Option
A series of call or put options with rules for determining strike prices. Typically, one option starts when the previous one terminates.
opod
0
60.31
7.6
0
11.06
8.7
12.08
6.5
11.67
CMO
Collateralized Mortgage Obligation.
opod
0
-75.4
24.5
0
36.32
31.9
19.58
2.5
27.87
Collar
See Interest Rate Collar.
opod
0
50.5
7.2
0
7.25
6.5
7.78
2
11.6
Collateralization
A system for posting collateral by one or both parties in a derivatives transaction.
opod
0
40.35
11.1
0
11.13
9.4
11.1
9
14.17
Collateralized Debt Obligation
A way of packaging credit risk. Several classes of securities (known as tranches) are created from a portfolio of bonds and there are rules for determining how the cost of defaults are allocated to classes.
opod
0
53.71
10.1
0
10.26
10.4
10.37
12.25
13.86
Collateralized Mortgage Obligation (CMO)
A mortgage-backed security where in- vestors are divided into classes and there are rules for determining how principal repayments are channeled to the classes.
opod
0
30.2
15
0
15.38
17.5
12.06
18
17.93
Combination
A position involving both calls and puts on the same underlying asset.
opod
0
50.84
9.2
0
9.85
7.7
12.13
8
14.8
Commodity Futures Trading Commission
A body that regulates trading in futures contracts in the United States.
opod
0
67.76
6.8
0
10.83
8.5
9.5
6
8.13
Commodity Swap
A swap where cash flows depend on the price of a commodity.
opod
0
84.68
4.4
0
4.57
3.4
8.18
6
8.13
Compound Correlation
Correlation implied from the market price of a CDO tranche.
opod
0
69.79
6
0
9.66
7.1
10.45
5
8
Compound Option
An option on an option.
opod
0
83.32
2.9
0
-0.85
-1.1
7.04
1.5
2
Compounding Frequency
This defines how an interest rate is measured.
opod
0
71.82
5.2
0
7.9
5.6
9.95
4
8.2
Compounding Swap
Swap where interest compounds instead of being paid.
opod
0
63.36
6.4
0
12.25
9.1
9.95
4
8.2
Conditional Value at Risk (C-VaR)
Expected loss during days conditional on being in the 100 tail of the distribution of profits/losses. The variable is the time horizon and is the confidence level.
opod
0
49.31
9.7
0
10.9
9.2
10.15
8.25
11.33
Confirmation
Contract confirming verbal agreement between two parties to a trade in the over-the-counter market.
opod
0
48.81
9.9
0
16.52
14.5
9.97
8
8.46
Constant Elasticity of Variance (CEV) Model
Model where the variance of the change in a variable in a short period of time is proportional to the value of the variable.
opod
0
64.04
10.3
0
7.2
10.4
8.12
14
12.93
Constant Maturity Swap (CMS)
A swap where a swap rate is exchanged for either a fixed rate or a floating rate on each payment date.
opod
0
84
6.8
0
5.11
7.4
7.69
10.5
8.4
Constant Maturity Treasury Swap
A swap where the yield on a Treasury bond is exchanged for either a fixed rate or a floating rate on each payment date.
opod
0
80.96
7.9
0
5.98
9.4
9.43
12
9.6
Consumption Asset
An asset held for consumption rather than investment.
opod
0
63.36
6.4
0
13.01
9.7
9.95
5
13.2
Contango
A situation where the futures price is above the expected future spot price (also often used to refer to the situation where the futures price is above the current spot price).
opod
0
48.47
14.2
0
10.05
16.3
8.23
18.5
14.98
Continuous Compounding
A way of quoting interest rates. It is the limit as the assumed compounding interval is made smaller and smaller.
opod
0
61.33
7.2
0
7.92
5.7
10.45
5.5
10
Control Variate Technique
A technique that can sometimes be used for improving the accuracy of a numerical procedure.
opod
0
39.33
11.5
0
11.53
10.2
9.64
11.5
16.67
Convenience Yield
A measure of the benefits from ownership of an asset that are not obtained by the holder of a long futures contract on the asset.
opod
0
63.02
10.7
0
7.14
10.9
8.67
14.5
13.2
Conversion Factor
A factor used to determine the number of bonds that must be delivered in the CME Group bond futures contract.
opod
0
68.1
8.7
0
8.53
9.8
10.94
12
12
Convertible Bond
A corporate bond that can be converted into a predetermined amount of the company’s equity at certain times during its life.
opod
0
41.7
12.7
0
11.14
12.4
9.94
15.5
17.92
Convexity
A measure of the curvature in the relationship between bond prices and bond yields.
opod
0
65.73
7.6
0
10.72
9.1
9.97
8
11.31
Convexity Adjustment
An overworked term. For example, it can refer to the adjust- ment necessary to convert a futures interest rate to a forward interest rate. It can also refer to the adjustment to a forward rate that is sometimes necessary when Black’s model is used.
opod
0
56.55
9
11.2
8.52
7.9
8.67
8.333333
9.52
Copula
A way of defining the correlation between variables with known distributions.
opod
0
43.39
9.9
0
16.34
12.8
9.92
6.5
11.67
Cornish-Fisher Expansion
An approximate relationship between the fractiles of a probability distribution and its moments.
opod
0
7.52
15.4
0
18.84
15.5
11.57
10.5
17.51
Cost of Carry
The storage costs plus the cost of financing an asset minus the income earned on the asset.
opod
0
71.14
7.6
0
7.65
7.8
10.98
8.5
9.15
Counterparty
The opposite side in a financial transaction.
opod
0
38.99
9.6
0
11.55
8.3
10.75
5.5
19.94
Coupon
Interest payment made on a bond.
opod
0
73.85
4.5
0
4.28
2.8
9.2
3
9.07
Covariance
Measure of the linear relationship between two variables (equals the correlation between the variables times the product of their standard deviations).
opod
0
33.24
13.8
0
18.1
18.5
11.45
13.5
14.11
Covariance Matrix
See Variance-Covariance Matrix.
opod
0
-24.64
17.4
0
26.63
25.6
19.58
1.5
14.53
Covered Call
A short position in a call option on an asset combined with a long position in the asset.
opod
0
70.13
8
0
5.28
6.4
8.04
11
9.42
Crashophobia
Fear of a stock market crash that some people claim causes the market to increase the price of deep-out-of-the-money put options.
opod
0
67.08
9.1
0
11.43
13.5
7.69
11.5
8.4
Credit Contagion
The tendency of a default by one company to lead to defaults by other companies.
opod
0
56.25
9.1
0
7.24
6.8
8.59
10.5
11.33
Credit Default Swap
An instrument that gives the holder the right to sell a bond for its face value in the event of a default by the issuer.
opod
0
79.94
8.3
0
5.06
9.2
8.67
13.5
11.6
Credit Derivative
A derivative whose payoff depends on the creditworthiness of one or more companies or countries.
opod
0
39.33
11.5
0
13.45
11.8
10.7
10.5
14
Credit Event
Event, such as a default or reorganization, triggering a payout on a credit derivative.
opod
0
23.43
13.5
0
11.53
10.5
12.23
9
14.17
Credit Event Binary Option
Exchange-traded option that provides a fixed payoff if a reference entity suffers a credit event.
opod
0
39.33
11.5
0
13.45
12.1
14.91
10.5
11.33
Credit Index
Index that tracks the cost of buying protection for each company in a portfolio (e.g., CDX NA IG and iTraxx Europe).
opod
0
58.62
10.3
0
7.6
10.6
13.7
13.5
12.21
Credit Rating
A measure of the creditworthiness of a bond issue.
opod
0
53.88
8
0
7.39
5.1
9.35
4.5
8.04
Credit Ratings Transition Matrix
A table showing the probability that a company will move from one credit rating to another during a certain period of time.
opod
0
40.69
13.1
0
9.34
11.4
8.32
15
12.44
Credit Risk
The risk that a loss will be experienced because of a default by the counterparty in a derivatives transaction.
opod
0
43.73
11.9
0
10.79
11.1
9.57
13.5
16.02
Credit Spread Option
Option whose payoff depends on the spread between the yields earned on two assets.
opod
0
74.19
6.4
0
10.32
8.8
11.1
6
5.6
Credit Support Annex (CSA)
Part of ISDA Master Agreement dealing with collateral requirements.
opod
0
28.5
11.5
0
18.3
14
12.86
5.5
12.49
Credit Value Adjustment
Adjustment to value of derivatives outstanding with a counterparty to reflect the counterparty’s default risk.
opod
0
-19.9
19.8
0
18.84
16.2
12.8
12.5
19.33
Credit Value at Risk
The credit loss that will not be exceeded at some specified confidence level.
opod
0
58.28
8.4
0
10.37
8.6
9.14
8.5
14.43
CreditMetrics
A procedure for calculating credit value at risk.
opod
0
37.98
10
0
10.11
7.3
11.93
5
13.2
Cross Hedging
Hedging an exposure to the price of one asset with a contract on another asset.
opod
0
64.71
8
0
6.89
6.5
8.59
8.5
8.67
Cumulative Distribution Function
The probability that a variable will be less than as a function of .
opod
0
66.74
7.2
0
5.9
5
7.93
7
8.28
Currency Swap
A swap where interest and principal in one currency are exchanged for interest and principal in another currency.
opod
0
36.28
12.7
0
13.05
12.7
8.92
16
13.87
CVA
See Credit Value Adjustment.
opod
0
33.58
9.6
0
11.6
10
11.73
2
11.6
Day Count
A convention for quoting interest rates.
opod
0
48.47
8
0
12.05
9
14.46
4
15.73
Day Trade
A trade that is entered into and closed out on the same day.
opod
0
92.12
3.6
0
2.83
2.4
6.71
5.5
5.2
Debt (or Debit) Value Adjustment
Value to a company of the fact that it might default on outstanding derivatives transactions.
opod
0
47.79
10.3
0
12.29
10.9
8.59
11.5
14
Default Correlation
Measures the tendency of two companies to default at about the same time.
opod
0
66.74
7.2
0
8.63
7.2
9.14
7.5
11.35
Default Intensity
See Hazard Rate.
opod
0
93.81
0.9
0
-0.46
2.1
9.05
0.5
1.2
Default Probability Density
Measures the unconditional probability of default in a future short period of time.
opod
0
24.44
13.1
0
13.04
10.8
11.57
8.5
14.43
Deferred Payment Option
An option where the price paid is deferred until the end of the option’s life.
opod
0
81.63
5.6
0
6.49
6.2
7.54
6.5
6
Deferred Swap
An agreement to enter into a swap at some time in the future (also called a forward swap).
opod
0
78.59
6.8
0
4.99
6.7
8.04
8
7.2
Delivery Price
Price agreed to (possibly some time in the past) in a forward contract.
opod
0
83.66
4.8
0
6.83
6.5
7.93
6.5
8.28
Delta
The rate of change of the price of a derivative with the price of the underlying asset.
opod
0
71.14
7.6
0
6.32
6.8
7.27
10.5
11.51
Delta Hedging
A hedging scheme that is designed to make the price of a portfolio of derivatives insensitive to small changes in the price of the underlying asset.
opod
0
53.55
12.3
0
10.22
13.8
10.39
17
16.55
Delta-Neutral Portfolio
A portfolio with a delta of zero so that there is no sensitivity to small changes in the price of the underlying asset.
opod
0
56.59
11.1
0
7.2
9.9
9.58
14.5
14.42
DerivaGem
The software accompanying this book.
opod
0
32.56
10
0
14.24
11.2
10.2
2.5
10
Derivative
An instrument whose price depends on, or is derived from, the price of another asset.
opod
0
64.71
8
0
8.4
8.3
8.59
8.5
8.67
Deterministic Variable
A variable whose future value is known.
opod
0
81.29
3.7
0
6.56
4.3
8.5
2.5
2.8
Diagonal Spread
A position in two calls where both the strike prices and times to maturity are different. (A diagonal spread can also be created with put options.)
opod
0
53.55
12.3
0
9.35
13.7
10.39
18
16.55
Differential Swap
A swap where a floating rate in one currency is exchanged for a floating rate in another currency and both rates are applied to the same principal.
opod
0
60.99
11.5
0
8.77
13.2
9.07
17.5
13.76
Diffusion Process
Model where value of asset changes continuously (no jumps).
opod
0
45.42
9.2
0
11.86
9.8
12.86
4.5
8.04
Dirty Price of Bond
Cash price of bond.
opod
0
118.18
-2.3
0
-1.46
-0.7
7.78
1
1.6
Discount Bond
See Zero-Coupon Bond.
opod
0
59.97
5.6
0
7.32
9.9
19.58
1.5
1.2
Discount Instrument
An instrument, such as a Treasury bill, that provides no coupons.
opod
0
1.09
15.8
0
8.97
7.6
9.92
5.5
8.04
Diversification
Reducing risk by dividing a portfolio between many different assets.
opod
0
27.49
11.9
0
14.88
11.4
12.03
8
16
Dividend
A cash payment made to the owner of a stock.
opod
0
95.17
2.5
0
0.96
0.1
0.5
4
4
Dividend Yield
The dividend as a percentage of the stock price.
opod
0
79.26
4.4
0
6.06
4
7.59
5.5
12.49
Dodd-Frank Act
An act introduced in the United States in 2010 designed to protect consumers and investors, avoid future bailouts, and monitor the functioning of the financial system more carefully.
opod
0
43.06
14.2
0
14.51
18.7
12.36
19
18.34
Dollar Duration
The product of a bond’s modified duration and the bond price.
opod
0
68.77
6.4
0
7.93
5.9
11.36
6.5
11.67
DOOM Option
Deep-out-of-the-money put option.
opod
0
9.21
12.7
0
24.72
28.7
9.05
1.5
1.2
Down-and-In Option
An option that comes into existence when the price of the underlying asset declines to a prespecified level.
opod
0
44.75
11.5
0
11.42
11.4
10.67
12
13.87
Down-and-Out Option
An option that ceases to exist when the price of the under- lying asset declines to a prespecified level.
opod
0
52.19
10.7
0
8.65
9.6
9.57
10.5
9.71
Downgrade Trigger
A clause in a contract that states that the contract will be terminated with a cash settlement if the credit rating of one side falls below a certain level.
opod
0
33.58
15.8
0
8.72
13.8
8.34
16.5
12.98
Drift Rate
The average increase per unit of time in a stochastic variable.
opod
0
68.77
6.4
0
8.97
6.8
12.79
6.5
11.67
Duration
A measure of the average life a bond. It is also an approximation to the ratio of the proportional change in the bond price to the absolute change in its yield.
opod
0
64.2
8.2
0
6.38
6.1
7.97
8.75
11.36
Duration Matching
A procedure for matching the durations of assets and liabilities in a financial institution.
opod
0
14.97
14.7
0
14.43
12.1
12.23
12
19.89
DV01
The dollar value of a 1-basis-point increase in all interest rates.
opod
0
60.31
7.6
0
10.01
8.5
11.36
6.5
8.04
DVA
See Debt (or Debit) Value Adjustment.
opod
0
56.93
6.8
0
7.18
6.7
11.83
3
9.07
Dynamic Hedging
A procedure for hedging an option position by periodically changing the position held in the underlying asset. The objective is usually to maintain a delta-neutral position.
opod
0
-9.41
17.8
0
14.2
11.9
12.18
11
14.43
Early Exercise
Exercise prior to the maturity date.
opod
0
31.55
10.4
0
8.17
5.9
11.83
4
15.73
Effective Federal Funds Rate
Weighted average federal funds rate for brokered transactions.
opod
0
-38.17
20.6
0
19.5
15
15.88
6
18.2
Efficient Market Hypothesis
A hypothesis that asset prices reflect relevant information.
opod
0
4.14
14.7
0
18.05
13.8
15.88
6
18.2
Electronic Trading
System of trading where a computer is used to match buyers and sellers.
opod
0
66.74
7.2
0
7.7
6.5
10.35
6.5
8.28
Embedded Option
An option that is an inseparable part of another instrument.
opod
0
35.95
10.7
0
10.24
7.6
8.87
7
12