A range accrual is a type of interest rate swap in which the floating leg of the swap pays periodic interest payments based on a underlying reference rate, less a predetermined spread, while the fixed leg pays a fixed rate of interest. The payments on the floating leg are based on the difference between the reference rate and a predetermined strike price, and are made even if the reference rate remains unchanged. If the reference rate exceeds the strike price, no payments are made. What are the 4 levels of pitch? The four levels of pitch are:
1. The basic pitch
2. The initial offer
3. The counteroffer
4. The final offer
What do you mean by ranges?
In options and derivatives trading, a range is the difference between the highest and lowest prices at which a security or contract traded during a specified period of time. The high and low prices are referred to as the "upper" and "lower" limits, respectively. What are range notes? Range notes are a type of derivative security that gives the holder the right, but not the obligation, to buy or sell an underlying asset at a specified price (the strike price) during a specified period of time (the expiration date). The underlying asset can be a stock, a bond, a commodity, or a currency.
Range notes are similar to other types of derivatives, such as options and futures, but they have some important differences. For instance, options and futures contracts are typically traded on exchanges, while range notes are usually traded over-the-counter (OTC). This means that there is no central exchange or clearinghouse for range notes, and the parties to the transaction must agree on the terms of the contract themselves.
Another key difference is that options and futures contracts are typically for a specific quantity of the underlying asset, while range notes are typically for a certain dollar amount. For example, you might buy an option contract to purchase 100 shares of stock at a certain price, but a range note might give you the right to purchase $10,000 worth of stock at that price.
Range notes can be used for a variety of purposes, such as hedging against price fluctuations or speculate on the direction of the market. What are the key ranges? The key ranges are the prices at which a security or commodity traded during a particular time period. The high and low prices during the time period are the extremes of the range, and the prices in between are the key intermediate levels.
Why do preferred shares get called? Preferred shares are called when the issuer wants to redeem them, typically because the company is doing well and wants to buy back shares to reinvest in its business or pay down debt. The shares are "called" at a price set by the issuer, which is usually above the current market price. This is done to give shareholders an incentive to sell their shares back to the company.