Discount rate as function of interest rate

Discount function under compound discount

Definition of effective rate of interest for nth period

Definition of effective rate of discount for nth period

Definition of force of interest at time t

Effective rate under simple interest

Discount (or present value) factor under compound interest

Real rate of interest in presence of inflation at rate r

Discount (or present value) factor under simple interest

Accumulated value of immediate annuity

Present value of immediate annuity

Relationship of present value to accumulated value

Relationship of present value to accumulated value

Accumulated value of annuity-due

Present value of annuity-due

Present value of k-period deferred immediate annuity

Present value of increasing immediate annuity

Accumulated value of increasing immediate annuity

Present value of increasing immediate perpetuity

Outstanding balance of level-payment loan by prospective method

Outstanding balance of level-payment loan by retrospective method

Relationships between interest and discount rates

Effective rate of interest

Effective rate of discount

Constant force of interest

Present value of constant force of interest

Accumulated value of constant force of interest

Relationships of interest

Sum of geometric progression

Present value of perpetuity immediate

Present value of perpetuity due

Present value of decreasing immediate annuity

Present value of increasing perpetuity due

Principal payment on a loan

Interest payment on a loan

Bond pricing formulas

Bond price between coupon dates

Stock price

Forward rate

Macaulay duration

Modified duration
Method of Equated Time

What to Pay

Item No Dividend Dividend Dividend yield

Prepaid forward

Forward contract

Sell to broker at the bid price and buy from broker at the ask price

Buy asset and buy a put = floor = protective put = buy a call and lending

Short asset and buy a call = cap = purchased put and borrowing

Covered call = selling a call and owning the asset = selling a put

Covered put = selling a put and shorting the asset = selling a call

Synthetic forward = buy a call and sell a put at the same exercise price

Bull Spread = buy and sell a call w/ sell call having higher strike

Bear Spread = buy and sell a call w/ buy all with a higher strike

Box spread = combo of synthetic long and short forwards = combo of bull and bear
spreads

Ratio spread = buy and sell unequal numbers of options at different strike prices

Collar = buy a put and sell a call with the call strike being higher

Straddle = buy a put and a call at the same strike

Written straddle = sell a put and a call at the same strike

Strangle = straddle with out-of-money options

Butterfly spread = written straddle and strangle

Asymmetric butterfly spread = written straddle and out-of-money ratio spread

Cash-and-carry = short forward and buy asset

Reverse cash-and-carry = long forward and short asset