Cyber*School

abbr. International Accounting Standards

abbr. Internal Capital Adequacy Assessment Process. It is the regulatory process to comply with the capital requirements.

abbr. International Capital Markets Association

abbr. Internal Capital Adequacy Assessment Process. It is the regulatory process to comply with the capital requirements.

abbr. International Monetary Fund (IMF)

International Monetary MarketThe IMM is the part of the CME where interest-rate- and currency-contracts are traded.v. CME

a FRA with a settlement-day that corresponds to the standard-settlement days futures traded at the IMM,i.e. the third Wednesday in the last month of each quarter (March, June, September, December).

swap with a start date, that is equal to a standard settlement date of IMM (International Monetary Market) futures. I.e. the third Wednesday of the last month of each quarter.

(IOC) order which must be executed wholly or partly, if it is entered. Unexecuted order parts are canceled.

measure of expected future fluctuation of an instrumentthe i.v. is an important input factor of options pricing modells from the statistical point of view the i.v. is the annualised standard deviation opposite: historical volatility

A cost that is incurred by virtue of using an asset instead of investing it or undertaking an alternative course of action. An imputed cost is an invisible cost that is not incurred directly. Often it involves opportunity costs, which are costs of lost opportunities, interests or rewards. In financial accounting only interests are recognized which are paid to lenders. In business accounting the total capital will be calculated for the interest costs, including the equity capital, which is why an imputed interest rate (capital cost) is recognized for the operating assets.

coupon swap in which the variable side is fixed at the end of the interest period

Description of an option that has an intrinsic value. A call is in the money if the price of the underlying is above the strike price. A put is in the money if the price of the underlying is below the strike price.

A call is in-the-money if the spot price of the underlying is above the strike price. A put is in-the-money if the spot price of the underlying is below the strike price.

(Stock index) Statistical measure which shows the changes in relation to an earlier time (price and cyclical movements). A stock index is a price index or a performance index, which represents the average price of the equity basket, a country, a region as a whole or of individual sectors. The starting point is the price level on a given day. Among the most famous stock indexes are the Dow Jones Industrial, S & P 500, MSCI, Nikkei 225 and the DAX.

The value of all companies included in a particular index. The value of the company is calculated by multiplying the price by the number of shares included in the index.

A type of mutual fund with a portfolio constructed to match or track the components of a market index, such as the Standard & Poor's 500 Index (S&P 500). An index mutual fund is said to provide broad market exposure, low operating expenses and low portfolio turnover. Investing in an index fund is a form of passive investing. The primary advantage to such a strategy is the lower management expense ratio on an index fund.

An option whose underlying is an index.

v. basis swap

(indicative NAV Net Asset Value) The sum of all assets held by an investment fund (Exchange Traded Funds), ie the value of all securities, cash balances cash deposits and other rights. The indicative NAV is determined continuously during the trading day.