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Lambda
LambdaThe ratio of a change in the option price to a small change in the option volatility. RELATED TERMS-------------------------------------- Ratio The relation between two quantifies expressed as the number of times one is greater than the other. Option The right but not the obligation to buy or sell a fixed quantity of a commodity, currency or security at a fixed price on or until a particular date. Price The cost of a good or service to the consumer. Volatility Is the annualized standard deviation of the natural logarithms of asset returns. SIMILAR TERMS-------------------------------------- PREVIOUS AND NEXT TERMS-------------------------------------- Lag 1) Payment of a financial obligation later than is expected or required, as in lead and lag. 2) Number of periods that an dependent variable in a regression model is "held back" in order to predict the dependent variable. Lag response of prepayments A delay of typically about three months between the time the weighted-average coupon of an MBS pool crosses the threshold for refinancing and observation of an acceleration in prepayment speed is observed. Lagging Strategy used by a firm to stall payments, normally in response to exchange rate projections. Lagging indicator A measurable economic factor that changes after the economy has already begun to follow a particular pattern or trend. Laissez-faire The capitalist doctrine which states that an economy will prosper if its entrepreneurs are allowed to conduct business with minimal governmental interference. Lambda Land The earth, and the raw materials contained in it or growing on it. Land bank A public agency which provides below-market financing for the purchase or refinancing of undeveloped land for the purpose of developing affordable housing and economic revitalization projects. Land contract A method of real estate financing; a mortgage-holding seller finances a buyer by taking a down payment and subsequent payments in installments, but holds the title until the mortgage is fully repaid. Landesbank The Central Bank for a German Land, or province. Landlord A property owner who rents property to a tenant. We thank you for using the Financial Dictionary to search for Lambda. If you have a better definition for Lambda than the one presented here, please let us know by making use of the suggest a term option. This definition of Lambda may be disputed by other professionals. Our attempt is to provide easy definitions on Lambda and any other medical topic for the public at large.
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