riskless return
31Hedged portfolio — A portfolio consisting of the long position in the stock and the short position in the call option, so as to be riskless and produce a return that equals the risk free interest rate. The New York Times Financial Glossary …
32excess returns — Difference between an asset s return and the riskless rate. Sometimes confused with abnormal returns, returns in excess of those required by some asset pricing model. Bloomberg Financial Dictionary …
33hedged portfolio — A portfolio consisting of a long position in the stock and a long position in the put option on the stock, so as to be riskless and produce a return that equals the risk free interest rate. Bloomberg Financial Dictionary …
34risk-free asset — also: riskless asset An asset whose future normal return is known today with certainty. Bloomberg Financial Dictionary …
35option reversals — A type of arbitrage which maintains (and relies on) put call parity. If a put is overvalued (or if the put is fairly valued but the call is undervalued), a riskless profit can be made by selling the put, buying the call, and selling the… …
36sound — Synonyms and related words: Christian, able to pay, accepted, adamantine, admissible, advantageous, advertise, all there, announce, annunciate, appear, appear like, appraise, appreciate, approved, arm, armlet, articulate, aspect, assay, assess,… …
