What are Open-end Mutual Funds? Open-end mutual funds refer to mutual funds that issue shares to investors based on the fund’s net asset value (NAV) per share. In an open-end mutual fund, investors purchase shares directly from the mutual fund at the net asset value (the value of the fund’s underlying securities) per share rather…
What is the UNICODE Function? The UNICODE Function is categorized under Excel Text functions. It will give the number (code point) for the first character of a supplied text string. The function was introduced in MS Excel 2013. Formula =UNICODE(text) The UNICODE Function requires the following argument: Text (required argument) – This is the…
What is the YIELD Function? The YIELD Function is categorized under Excel Financial functions. It will calculate the yield on a security that pays periodic interest. The function is generally used to calculate bond yield. As a financial analyst, we often calculate the yield on a bond to determine the income that would be generated…
What is the Non-Directional Trading Strategies Template? The non-directional trading strategies template allows users to determine the profit when buying options. This template focuses on non-directional strategies that bet on the volatility of the market to create profit. These strategies usually include a combination of call and put options. The profit of the strategies depends…
What is the WEEKNUM Function? The WEEKNUM Function is an Excel DATE and TIME Function. It is often overlooked but can quite useful when utilized properly. Basically, the WEEKNUM function will return the week number of a specific date as per the calendar year. The function will return an integer that represents a week number…
What is the COVARIANCE.S Function? The COVARIANCE.S Function is categorized under Excel Statistical functions. It will calculate the sample covariance for two sets of values provided by a user. As a financial modeling analyst, the COVARIANCE.S function is very useful when we want to find the extent to which two assets move in tandem –…
What is the CORREL Function? The CORREL Function is categorized under Excel Statistical functions. It will calculate the correlation coefficient between two variables. As a financial analyst, the CORREL function is very useful when we want to find the correlation between two variables, e.g., the correlation between a particular stock and a market index. Correlation…
What is the COVAR Function? The COVAR Function is categorized under Excel Statistical functions. It will calculate the covariance of two sets of values. As a financial analyst, suppose we want to see how two stocks may move together in the future. Looking at their historical prices, we can determine if the prices tend to…
What is Gamma? In the world of finance, gamma refers to the rate of change in delta. It is used more specifically when talking about options. Gamma, for options, is recorded as a percentage value; it represents how the delta of the option changes with each one-point change in the price of the underlying stock….
What is Rho? In finance, rho is a metric used to determine how sensitive an option is to risk-free interest rate changes. Arguably the least important and least used of the Greek option metrics, rho is typically expressed in a dollar amount. The metric shows how much money an option stands to gain or lose…
