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Notional amount. The notional amount (or notional principal amount or notional value) on a financial instrument is the nominal or face amount that is used to calculate payments made on that instrument. This amount generally does not change and is thus referred to as notional. [1]
Basics. Derivatives are contracts between two parties that specify conditions (especially the dates, resulting values and definitions of the underlying variables, the parties' contractual obligations, and the notional amount) under which payments are to be made between the parties. [5] [6] The assets include commodities, stocks, bonds, interest ...
Glossary of mathematical symbols. A mathematical symbol is a figure or a combination of figures that is used to represent a mathematical object, an action on mathematical objects, a relation between mathematical objects, or for structuring the other symbols that occur in a formula. As formulas are entirely constituted with symbols of various ...
Mathematical notation consists of using symbols for representing operations, unspecified numbers, relations, and any other mathematical objects and assembling them into expressions and formulas. Mathematical notation is widely used in mathematics, science, and engineering for representing complex concepts and properties in a concise ...
A FRA transaction is a contract between two parties to exchange payments on a deposit, called the Notional amount, to be determined on the basis of a short-term interest rate, referred to as the Reference rate, over a predetermined time period at a future date. FRA transactions are entered as a hedge against interest rate changes.
A natural number can be used to express the size of a finite set; more precisely, a cardinal number is a measure for the size of a set, which is even suitable for infinite sets. The numbering of cardinals usually begins at zero, to accommodate the empty set. ∅ {\displaystyle \emptyset }
In finance, an interest rate cap is a type of interest rate 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 each month the LIBOR rate exceeds 2.5%. Similarly, an interest rate floor is a ...
Positional notation (or place-value notation, or positional numeral system) usually denotes the extension to any base of the Hindu–Arabic numeral system (or decimal system ). More generally, a positional system is a numeral system in which the contribution of a digit to the value of a number is the value of the digit multiplied by a factor ...