Option-adjusted spread (oas) - total return, Financial Management

The horizon price can be determined by incorporating Option-Adjusted Spread (OAS) into a total return analysis. But this requires a valuation model. How the OAS is expected to change has to be specified at the end of investment horizon. The expectations of the portfolio manager are reflected through the assumptions made about the OAS value at the investment horizon. Usually OAS value assumed at the time of purchase and OAS at the horizon date will be the same. Total return determined using this assumption is referred to as constant-OAS total return.

Posted Date: 9/11/2012 1:49:09 AM | Location : United States







Related Discussions:- Option-adjusted spread (oas) - total return, Assignment Help, Ask Question on Option-adjusted spread (oas) - total return, Get Answer, Expert's Help, Option-adjusted spread (oas) - total return Discussions

Write discussion on Option-adjusted spread (oas) - total return
Your posts are moderated
Related Questions
Balance Sheets   Peony Ltd. Aster Ltd. Assets:     Cash $     62,500 $

which type of financing is appropriate to each firm

Explain how to resolve a "ranking conflict" between the net present value and the internal rate of return.  Why should the conflict be resolved as you explained? Whenever there

Portfolio Diversification The objectives of diversification are to: Reduce the variability of the fund's total return; Reduce the exposure to any single component of t

Assemble all other inputs/assumptions based on the past data. Use your best judgment to have the most reasonable estimates. Tasks 1. Prepare an Excel spreadsheet containi

a) IPod -Line / Mass production is most suitable given that Apple can sell the standardised product to mass markets across the world. Only small variations to the production proces

Q. What do you mean by Equity? Equity - Residual INTEREST in ASSETS of an entity which remains after deducting its LIABILITIES. Additionally, amount of a business' total assets

Shareholders' wealth maximization Shareholders' wealth maximization refers to maximization of the net present value of every decision made in the firm. Total present value is e

Q Operating economics A number of operating economies will be available with the merger of two or more companies. Duplicating facilities in accounting purchasing marketing etc

Explain the Competitive Benchmarking Healthcare services or Hospital are compared to rival 'competition 'in the same industry for instance methods of patient care and levels o