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This was a really good question, and a fascinating topic (one that was admittedly hard to wrap my head around). I found a great video on this topic here. When people say you're selling a (cheap) put option, they generally imply you're taking a needlessly big risk for only marginal upside. For example: not having adequate cash in your portfolio is ...


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Net Present Value (NPV) as a soft concept existed probably even in antiquity but it was formalized and made popular by Irving Fisher in his book the Rate of Interest. Internal rate of return is basically a special application of NPV. It was also first formally introduced in Fisher's book although he called it 'rate of return over costs'. Duration of bonds ...


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