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
Q. Explain about Book Value Weights? Book Value Weights: - Book value weights are calculating form the values taken from the balance sheet. The weight to be assigned to every s

dear, I found an exercise on the Internet which could help me has better to understand the finance, but there were no answers. What is that you can help me has to solve it. I''m fr

Call-Put Parity P + S = C + E * [1/(1+i)] ^n     where:      P = the market price of the put    S = the market price of the stock    C = the market price of the call

What is Creative accounting Creative accounting (also termed as aggressive accounting or earnings management) distorts financial analysis of company accounts. Creative accounti

Q. What is Business Combinations? Combining of two entities. Under PURCHASE METHOD OFACCOUNTING, one entity is deemed to attain another and there is a new basis of accountingfo

Treasury securities are government bonds issued by the US Treasury Department. These are issued through the Bureau of the Public Debt. They are debt-financing ins

Floria Scarpia believes that many of her clients could benefits from using international investments to diversify their portfolios but many are reluctant to invest abroad -especial

Question 1 Explain the concept and phases of capital budgeting Question 2 Define and explain the methods of demand forecasting Question 3 Mention the elements o

The following information pertains to Fairways Driving Range, Inc.: The company is considering operating a new driving range facility in Sanford, FL. In order to do so, they wi

Report based on Capital Investment Plans   To analyze the capital investment plans of Hatsun Agro Products Limited (HAPL) we shall look at the capital expenditure of HAPL in