Cyber*School

abbr. Cercle Investor Relations Austria

In trading terminology the exchange rate between British pound sterling and U.S. dollar (GBP/USD) is called cable.

see Capital Adequancy Directive

A call option gives the holder the right to purchase a specified quantity of the underlying at a specified strike price by a specified expiration date.

v. payer swaption

the relation between the prices of call and put options with the same strike price As it is possible the create a synthetic call option by buying a put and buying the underlying, arbitrage opportunities wouls arise, if the prices of the options would not comply with the call/put parity. Call=Put + (Underlying - Strike)/(1+interest rate*days/360) Put=Call + (Strike - Underlying)/(1+interest rate*days/360

A cap is an interest rate ceiling for a variable interest rate, and consists of a series of call options on a fixed reference interest rate (e.g. 6-months EURIBOR) with the same strike. A single option of this series is called caplet. The purchaser of the cap receives a compensation from the seller, if the reference interest rate exeeds the strike at the expiry date.

According to Basel II. The measure of the adequacy of the financial resources of a company in terms of the coverage of business risks and regulatory requirements.

the measure of the sufficiency of a firm's financial resources to enable it to meet its business and regulatory obligations

directive about the adequate equity a bank is obliged to hold The amount of equity depends on the extent of risk adjusted assets and the market risk that a bank holds.

Increase the share capital of the Company's assets (ie, from its own resources). Disclosed reserves are converted into dividend-bearing capital, ie the capital shall be corrected. Shareholders will receive bonus shares without additional payment, which are often referred to as bonus shares. The term bonus shares is misleading because the shareholder gets nothing for free at a capital adjustment: He has a proportion of the reserves from which the share capital is increased.

(CAPM) A model of capital market theory, which postulates a linear relationship between the expected return and systematic risk of shares.

Interest and dividends from Austrian securities are subject to 25% capital gains tax. Thus, the income tax is paid. In respect of shares and debt securities also the inheritance tax.

Financing of a company by an increase in equity. The possible forms depend on the legal form of the company.

market for a long-term fund raisingOften capital market is used as a synonym of the market for securities, which is devided into bond market and stock market.

mixture of EURIBOR and capital market floater

Main focus of the capital market initiative is to create confidence in the Austrian market. This is done by an Austrian Corporate Governance Code. Furthermore measures to increase the volume of securities traded are proposed.

the minimum ratio of regulatory capital to risk-weighted assets (currently at 8 %)

Reduction of the share capital, for example, to to eliminate losses incurred. Usually performed as part of a reorganization.

Capital risk is the possibility of losing the capital invested.