discount factor
51Exponential discounting — In economics exponential discounting refers to a specific form of the discount function, used in the analysis of choice over time (with or without uncertainty). Formally, exponential discounting occurs when total utility is given by :U({c t} {t=t …
52NATREX — The NATREX stands for NATural Real EXchange rate. It attempts to give a fair value for a currency. It is part of the family of long run equilibrium exchange rate theories (FEER, BEER, and NATREX). Notably the The approach offers an alternative… …
53Bond convexity — In finance, convexity is a measure of the sensitivity of the duration of a bond to changes in interest rates, the second derivative of the price of the bond with respect to interest rates (duration is the first derivative). In general, the higher …
54present value — The amount of cash today that is equivalent in value to a payment, or to a stream of payments, to be received in the future. To determine the present value, each future cash flow is multiplied by a present value factor. For example, if the… …
55Forward rate agreement — In finance, a forward rate agreement (FRA) is a forward contract in which one party pays a fixed interest rate, and receives a floating interest rate equal to a reference rate (the underlying rate). The payments are calculated over a notional… …
56Interest rate cap and floor — Interest rate c An interest rate cap is a derivative in which the buyer receives payments at the end of each period in which the interest rate exceeds the agreed strike price. An example of a cap would be an agreement to receive a payment for… …
57Economic model — A diagram of the IS/LM model In economics, a model is a theoretical construct that represents economic processes by a set of variables and a set of logical and/or quantitative relationships between them. The economic model is a simplified… …
58Q-learning — is a reinforcement learning technique that works by learning an action value function that gives the expected utility of taking a given action in a given state and following a fixed policy thereafter. A strength with Q learning is that it is able …
59Monte Carlo methods in finance — Monte Carlo methods are used in finance and mathematical finance to value and analyze (complex) instruments, portfolios and investments by simulating the various sources of uncertainty affecting their value, and then determining their average… …
60Ravi Jagannathan — is an Indian economist. He is currently a chaired professor at the Kellogg School of Management at Northwestern University. With the exception of the period 1989 1997 when he was a professor at the University of Minnesota, Prof. Jagannathan has… …
