Home > Glossary > Down Transition Probability

Meaning / Definition of

Down Transition Probability

Categories: Options, Technical Analysis,

A measurement using one of two pricing models of the likelihood that the underlying asset of an option will decrease during a specific period of time. A binomial pricing model weighs the probability of a decline against the probability of an increase while a trinomial model considers the probability of the price staying the same.

Featured term of the day

Definition / Meaning of

Floating Excess Policy

Categories: Insurance,

removed

Most popular terms

1. ConsensusDOCS
2. Act-as-one Provision
3. Floating Rate
4. Free Cash Flows
5. Brokerage Firm
6. Home Equity
7. Convertible Hedge
8. Filing Basis
9. Audit Committee
10. Most Favored Venue Wording

Search a term

Keyword:

Browse by alphabet

ABCDEFG
HIJKLMN
OPQRSTU
VWXYZ#

Browse by category

Accounting
Banking
Bankruptcy Assistance
Bonds and Treasuries
Brokerages
Business and Management
Compliance and Governance
Credit and Debt
E-commerce
Economics
Estate Planning
Forex
Fraud
Fundamental Analysis
Futures
Global
Insurance
International Trade
Investing and Trading
Ipos
Legal
Loan and Mortgage
Mergers and Acquisitions
Mutual Funds
Operation and Production
Options
Patent
Personnel Management
Real Estate
Retirement and Pension
Statistics and Risk Management
Stocks
Strategies
Tax
Technical Analysis
Venture Capital