What does quanto mean?

Definitions for quanto
quan·to

Here are all the possible meanings and translations of the word quanto.

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  1. Quanto

    A quanto is a type of derivative in which the underlying is denominated in one currency, but the instrument itself is settled in another currency at some fixed rate. Such products are attractive for speculators and investors who wish to have exposure to a foreign asset, but without the corresponding exchange rate risk. Quantos are attractive because they shield the purchaser from exchange rate fluctuations. If a US investor were to invest directly in the Japanese stocks that comprise the Nikkei, he would be exposed to both fluctuations in the Nikkei index and fluctuations in the USD/JPY exchange rate. Essentially, a quanto has an embedded currency forward with a variable notional amount. It is that variable notional amount that give quantos their name—"quanto" is short for "quantity adjusting option." Quanto options have both the strike price and underlier denominated in the foreign currency. At exercise, the value of the option is calculated as the option's intrinsic value in the foreign currency, which is then converted to the domestic currency at the fixed exchange rate. Another type of structure is called Quanto in the weather/energy markets. In these markets, a Quanto is a weather-contingent energy derivative. Weather contingent means that a payoff is triggered if some weather variable crosses a specified strike value. For the structure to be called Quanto, the payoff must depend on the market price of a publicly traded commodity. A typical example of a buyer of a Quanto is a retailer in a liberalized electricity market, with a customer base to which they deliver to a fixed contracted price. The retailers do buy most of their electricity forward, but have to go and purchase from the expensive spot market whenever they need to deliver more than what they've planned to. This situation typically occurs if the weather is hotter than expected and a substantial number of households turn on the airconditioning. As electricity demand rises sharply in such a situation, spot prices spike while the revenue from the sales side remains constant. Buying a quanto allows the retailer to hedge against that risk.

How to pronounce quanto?

  1. Alex
    Alex
    US English
    Daniel
    Daniel
    British
    Karen
    Karen
    Australian
    Veena
    Veena
    Indian

How to say quanto in sign language?

  1. quanto

Numerology

  1. Chaldean Numerology

    The numerical value of quanto in Chaldean Numerology is: 6

  2. Pythagorean Numerology

    The numerical value of quanto in Pythagorean Numerology is: 7

Examples of quanto in a Sentence

  1. Deodatta V. Shenai-Khatkhate:

    Per me, il Venerdì Santo rappresenta uno degli eventi più importanti nell'evoluzione di credenze e dell'umanità religiose, non solo per il cristianesimo, ma per l'umanità in generale, in quanto rappresenta il più grande sacrificio da Gesù Cristo tanto quanto la sofferenza eccezionale e la passione in Gesù 'la vita di Cristo. questa frase da Gesù Cristo, "Padre, perdona loro perché non sanno quello che fanno"., significa l'ultimo e il più alto livello di perdonare nonostante le azioni velenose e orribili peccati di nemici. Venerdì Santo è il giorno speciale per la meditazione sulle sofferenze e sacrifici compiuti da Gesù Cristo per l'umanità, e, soprattutto, per la raccolta la forza di perdonare i propri nemici peggiori indipendentemente dalle loro azioni inaccettabili.

Images & Illustrations of quanto

  1. quantoquantoquantoquantoquanto

Popularity rank by frequency of use

quanto#10000#81674#100000

Translations for quanto

From our Multilingual Translation Dictionary

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  • Yiddish ייִדיש (Yiddish)
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"quanto." Definitions.net. STANDS4 LLC, 2019. Web. 21 Jul 2019. <https://www.definitions.net/definition/quanto>.

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