Compound Probability Definition.

Compound probability is the probability that two or more events will occur in succession. For example, the probability of flipping a coin and getting heads is 1/2. The probability of flipping the coin twice and getting heads both times is 1/4. What is compound experiment in probability? In finance, a compound experiment is an experiment … Read more

Vega Definition.

Vega is a measure of the sensitivity of an option’s price to changes in the volatility of the underlying asset. It is a key measure of an option trader’s risk. The vega definition is the change in the option price with respect to a 1% change in the underlying asset’s volatility. Vega is always positive … Read more

What is the debt ratio?

The meaning of debt ratio is the ratio that measures the relationship between the amount of funds that a company has with respect to the debts incurred in both the long and the short term. The concept of debt ratio analyzes the financial appeceament, which is the proportion of debt that a company bears against … Read more