What is Synthetic Position? A synthetic position is a trading option used to simulate the features of another comparable position. More specifically, a synthetic position is created to simulate a similar reward or risk profile as that of a comparable position. In the field of options trading, a synthetic position is developed in two ways….
What is the PDURATION Function? The PDURATION Function is an Excel Financial function. It helps the user calculate the time or the specific number of periods required for an investment made to reach a particular value. In simple terms, it will answer the question: Suppose we invested $1,000,000 at 4% per annum – how long…
What is the DISC Function? The DISC Function is an Excel Financial function. It will calculate the rate of discount for a bond. It helps to know the discount rate when we know the other details about the bond. Formula =DISC(settlement, maturity, pr, redemption, [basis]) The DISC function uses the following arguments: Settlement (required argument)…
Beneish M Score Calculator The Beneish M Score calculator is used to determine whether or not the company has manipulated its reported earnings in its financial statements. This Beneish M Score calculator takes financial data that can be found on the company’s financial statements as inputs and calculates eight different financial ratios. It then applies…
What is the DB Function? The DB Function is an Excel Financial function. This function helps in calculating the depreciation of an asset. The method used for calculating depreciation is the Fixed Declining Balance Method for each period of the asset’s lifetime. Formula =DB(cost, salvage, life, period, [month]) The DB function uses the following arguments:…
What is the QUARTILE.INC Function? The QUARTILE.INC Function is categorized under Excel Statistical functions. It will return the quartile of a given data set based on percentile values from 0.1, inclusive. The function bases its calculation on a percentile range of 0 to 1, inclusive. As a financial analyst, QUARTILE.INC can be used to find…
What is the QUARTILE.EXC Function? The QUARTILE.EXC Function is categorized under Excel Statistical functions. It will return the quartile of a given data set based on percentile values from 0.1, exclusive. The function bases its calculation on a percentile range of 0 to 1, exclusive. As a financial analyst, QUARTILE.EXC can be used to find…
What is the SWITCH Function? The SWITCH Function is categorized under Excel’s Logical functions. This function will evaluate a given expression (or a value) against a list of values and will return a result corresponding to the first matching value. In case there is no matching value, an optional default value will be returned. SWITCH…
What is the NUMBERVALUE Function? The NUMBERVALUE Function is categorized under Excel TEXT functions. It will convert a text string into a number in a locale-independent manner. The function was added in MS Excel 2013 and not available in earlier versions. Formula =NUMBERVALUE(Text,[decimal_separator],[group_separator]) The NUMBERVALUE function uses the following arguments: Text (required argument) – This…
What is the EFFECT Function? The EFFECT Function is categorized under Excel Financial functions. It will calculate the annual interest rate with the number of compounding periods per year. The effective annual interest rate is often used to compare financial loans with different compounding terms. As a financial analyst, we often need to make decisions…
