level III
Covered Calls and Protective Puts
Covered Calls A covered call is a very common option strategy used by both individual and institutional investors. At option …
Synthetic Positions
Think of derivatives as building blocks that can be combined to create a specific payoff with the desired risk exposure. …
Option Basics
A Refresher on Options Terminology A call is a right to buy A put is a right to sell Each option contract will specify the underlying to which …
Structured Financial Investments
Structured finance represents an alternative to corporate bonds in the credit portfolio. They offer some combination of: Higher yield and …
International Credit Portfolios
Investing in multiple markets and currencies offers opportunity and risks. But even investors who restrict holdings to one country should …
Credit Strategy Approaches
Credit strategies normally establish return and risk parameters. A credit strategy is typically designed to achieve a constrained objective. VOCAB: …
Credit Spread Measures
A simple way to calculate a credit spread is to subtract the yield on a security with little or no …
Investment Grade and High Yield Bond Portfolios
A credit portfolio consists primarily of securities for which credit risk is an important consideration. The credit market is the …