What are Synthetic Options? Synthetic options are portfolios or trading positions holding a number of securities that when taken together, emulate another position. The payoff of the emulated, synthetic position and the actual position should, in theory, be identical. If the prices for these two are not identical then an arbitrage opportunity would exist in…
What is the NORM.DIST Function? The NORM.DIST Function is categorized under Excel Statistical functions. It will calculate the probability that variable x falls below or at a specified value. That is, it will calculate the normal probability density function or the cumulative normal distribution function for a given set of parameters. To understand what normal…
What is the YIELDDISC Function? The YIELDDISC Function is categorized under Excel Financial functions. It will calculate the annual yield for a discounted security. As a financial analyst, we often calculate the yield on a bond to determine the income that would be generated in a year. Yield is different from the rate of return,…
What is the Directional Trading Strategies Template? The directional trading strategies template helps investors determine the profit of different options strategies. The template includes four strategies: bull calls, bull puts, bear calls, and bear puts. The template shows the profit of the strategy depending on the spot price relative to the strike prices. Numbers of…
What is the Cable Industry Comps Template? The cable industry comps template allows investors to compare one cable company to other ones and to the industry as a whole. This method helps to determine the value of a particular company. This template looks at the Charter Communications Inc. Charter, which is an American telecommunications company…
What is the Telecommunication Industry Comps Template? The telecommunication industry comps template allows investors to compare one telecommunication company to other ones in the same industry. This method helps to determine the relative value of a particular company. This template looks at AT&T, which is one of the largest telecommunication company in the United States….
What is the Banking Industry Comps Template? The banking industry comps template allows investors to compare one banking company to other ones in the same industry. This method helps to determine the relative value of a particular company. This template looks at JPMorgan Chase & Co, one of the market leaders in the financial industry….
What is the UNICHAR Function? The UNICHAR Functionis categorized under Excel Text functions. UNICHAR gives the user a Unicode character of a specified number, where Unicode is a decimal number from 0 through 65535. The function was introduced in MS Excel 2013. Formula =UNICHAR(number) Where: The number argument is an integer. It is a…
What is the PRICEDISC Function? The PRICEDISC Function is categorized under Excel Financial functions. It will calculate the price of a bond per $100 face value of a discounted security. In financial analysis, PRICEDISC can be useful when we wish to borrow money by selling bonds instead of stocks. If we know the redemption value,…
What is the PRICEMAT Function? The PRICEMAT Function is categorized under Excel FINANCIAL functions. It will calculate the price of a bond that pays interest at maturity, per $100 face value. In financial analysis, the PRICEMAT function can be useful when we wish to borrow money by selling bonds instead of stocks. We need to…
