Spot volatilities

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

Similar financial terms

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 month
The nearest delivery month on a futures contract.

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.

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Progress review

A periodic review of a capital investment project to evaluate its continued economic viability.


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