Spot month

Similar financial terms

Spot volatilities
The volatilities used to price a cap when a different volatility is used for each caplet.

Theoretical spot rate curve
A curve derived from theoretical considerations as applied to the yields of actually traded Treasury debt securities because there are no zero-coupon Treasury debt issues with a maturity greater than one year. Like the yield curve, this is a graphical depiction of the term structure of interest rates.

Spot trade
The purchase and sale of a foreign currency, commodity, or other item for immediate delivery.

Spot rate curve
The graphical depiction of the relationship between the spot rates and maturity.

Spot rate
The theoretical yield on a zero-coupon Treasury security.

Spot price
The current marketprice of the actual physical commodity. Also called cash price.

Spot lending
The origination of mortgages by processing applications taken directly from prospective borrowers.

Spot interest rate
Interest rate fixed today on a loan that is made today.

Spot futures parity theorem
Describes the theoretically correct relationship between spot and futures prices. Violation of the parity relationship gives rise to arbitrage opportunities.

Spot exchange rates
Exchange rate on currency for immediate delivery.

Monthly income preferred security (MIP)
Preferred stock issued by a subsidiary located in a tax haven. The subsidiary relends the money to the parent.

Contract month
The month in which futures contracts may be satisfied by making or accepting a delivery. Also called value managers, those who assemble portfolios with relatively lower betas, lower price-book and P/E ratios and higher dividend yields, seeing value where others do not.