Lambda calculusLambda calculus (also written as λ-calculus) is a formal system in mathematical logic for expressing computation based on function abstraction and application using variable binding and substitution. It is a universal model of computation that can be used to simulate any Turing machine. It was introduced by the mathematician Alonzo Church in the 1930s as part of his research into the foundations of mathematics. Lambda calculus consists of constructing lambda terms and performing reduction operations on them.
Binary relationIn mathematics, a binary relation associates elements of one set, called the domain, with elements of another set, called the codomain. A binary relation over sets X and Y is a new set of ordered pairs (x, y) consisting of elements x in X and y in Y. It is a generalization of the more widely understood idea of a unary function. It encodes the common concept of relation: an element x is related to an element y, if and only if the pair (x, y) belongs to the set of ordered pairs that defines the binary relation.
Option styleIn finance, the style or family of an option is the class into which the option falls, usually defined by the dates on which the option may be exercised. The vast majority of options are either European or American (style) options. These options—as well as others where the payoff is calculated similarly—are referred to as "vanilla options". Options where the payoff is calculated differently are categorized as "exotic options". Exotic options can pose challenging problems in valuation and hedging.
Options strategyOption strategies are the simultaneous, and often mixed, buying or selling of one or more options that differ in one or more of the options' variables. Call options, simply known as Calls, give the buyer a right to buy a particular stock at that option's strike price. Opposite to that are Put options, simply known as Puts, which give the buyer the right to sell a particular stock at the option's strike price. This is often done to gain exposure to a specific type of opportunity or risk while eliminating other risks as part of a trading strategy.
Lambda liftingLambda lifting is a meta-process that restructures a computer program so that functions are defined independently of each other in a global scope. An individual "lift" transforms a local function into a global function. It is a two step process, consisting of; Eliminating free variables in the function by adding parameters. Moving functions from a restricted scope to broader or global scope. The term "lambda lifting" was first introduced by Thomas Johnsson around 1982 and was historically considered as a mechanism for implementing functional programming languages.
DefinitionA definition is a statement of the meaning of a term (a word, phrase, or other set of symbols). Definitions can be classified into two large categories: intensional definitions (which try to give the sense of a term), and extensional definitions (which try to list the objects that a term describes). Another important category of definitions is the class of ostensive definitions, which convey the meaning of a term by pointing out examples. A term may have many different senses and multiple meanings, and thus require multiple definitions.
Option (finance)In finance, an option is a contract which conveys to its owner, the holder, the right, but not the obligation, to buy or sell a specific quantity of an underlying asset or instrument at a specified strike price on or before a specified date, depending on the style of the option. Options are typically acquired by purchase, as a form of compensation, or as part of a complex financial transaction.
Finitary relationIn mathematics, a finitary relation over sets X1, ..., Xn is a subset of the Cartesian product X1 × ⋯ × Xn; that is, it is a set of n-tuples (x1, ..., xn) consisting of elements xi in Xi. Typically, the relation describes a possible connection between the elements of an n-tuple. For example, the relation "x is divisible by y and z" consists of the set of 3-tuples such that when substituted to x, y and z, respectively, make the sentence true. The non-negative integer n giving the number of "places" in the relation is called the arity, adicity or degree of the relation.
Real options valuationReal options valuation, also often termed real options analysis, (ROV or ROA) applies option valuation techniques to capital budgeting decisions. A real option itself, is the right—but not the obligation—to undertake certain business initiatives, such as deferring, abandoning, expanding, staging, or contracting a capital investment project. For example, real options valuation could examine the opportunity to invest in the expansion of a firm's factory and the alternative option to sell the factory.
Binary optionA binary option is a financial exotic option in which the payoff is either some fixed monetary amount or nothing at all. The two main types of binary options are the cash-or-nothing binary option and the asset-or-nothing binary option. The former pays some fixed amount of cash if the option expires in-the-money while the latter pays the value of the underlying security. They are also called all-or-nothing options, digital options (more common in forex/interest rate markets), and fixed return options (FROs) (on the NYSE American).
Asian optionAn Asian option (or average value option) is a special type of option contract. For Asian options, the payoff is determined by the average underlying price over some pre-set period of time. This is different from the case of the usual European option and American option, where the payoff of the option contract depends on the price of the underlying instrument at exercise; Asian options are thus one of the basic forms of exotic options.
Typed lambda calculusA typed lambda calculus is a typed formalism that uses the lambda-symbol () to denote anonymous function abstraction. In this context, types are usually objects of a syntactic nature that are assigned to lambda terms; the exact nature of a type depends on the calculus considered (see kinds below). From a certain point of view, typed lambda calculi can be seen as refinements of the untyped lambda calculus, but from another point of view, they can also be considered the more fundamental theory and untyped lambda calculus a special case with only one type.
Ternary relationIn mathematics, a ternary relation or triadic relation is a finitary relation in which the number of places in the relation is three. Ternary relations may also be referred to as 3-adic, 3-ary, 3-dimensional, or 3-place. Just as a binary relation is formally defined as a set of pairs, i.e. a subset of the Cartesian product A × B of some sets A and B, so a ternary relation is a set of triples, forming a subset of the Cartesian product A × B × C of three sets A, B and C.
Converse relationIn mathematics, the converse relation, or transpose, of a binary relation is the relation that occurs when the order of the elements is switched in the relation. For example, the converse of the relation 'child of' is the relation 'parent of'. In formal terms, if and are sets and is a relation from to then is the relation defined so that if and only if In set-builder notation, The notation is analogous with that for an inverse function. Although many functions do not have an inverse, every relation does have a unique converse.
Exotic optionIn finance, an exotic option is an option which has features making it more complex than commonly traded vanilla options. Like the more general exotic derivatives they may have several triggers relating to determination of payoff. An exotic option may also include a non-standard underlying instrument, developed for a particular client or for a particular market. Exotic options are more complex than options that trade on an exchange, and are generally traded over the counter.
Homogeneous relationIn mathematics, a homogeneous relation (also called endorelation) on a set X is a binary relation between X and itself, i.e. it is a subset of the Cartesian product X × X. This is commonly phrased as "a relation on X" or "a (binary) relation over X". An example of a homogeneous relation is the relation of kinship, where the relation is between people. Common types of endorelations include orders, graphs, and equivalences. Specialized studies of order theory and graph theory have developed understanding of endorelations.
Reflexive relationIn mathematics, a binary relation R on a set X is reflexive if it relates every element of X to itself. An example of a reflexive relation is the relation "is equal to" on the set of real numbers, since every real number is equal to itself. A reflexive relation is said to have the reflexive property or is said to possess reflexivity. Along with symmetry and transitivity, reflexivity is one of three properties defining equivalence relations.
Connected relationIn mathematics, a relation on a set is called connected or complete or total if it relates (or "compares") all pairs of elements of the set in one direction or the other while it is called strongly connected if it relates pairs of elements. As described in the terminology section below, the terminology for these properties is not uniform. This notion of "total" should not be confused with that of a total relation in the sense that for all there is a so that (see serial relation).
Asymmetric relationIn mathematics, an asymmetric relation is a binary relation on a set where for all if is related to then is not related to A binary relation on is any subset of Given write if and only if which means that is shorthand for The expression is read as " is related to by " The binary relation is called if for all if is true then is false; that is, if then This can be written in the notation of first-order logic as A logically equivalent definition is: for all at least one of and is , which in first-order logic c
Calculation in kindNOTOC Calculation in kind or calculation in-natura is a way of valuating resources and a system of accounting that uses disaggregated physical magnitudes as opposed to a common unit of calculation. As the basis for a socialist economy, it was proposed to replace money and financial calculation. In an in-kind economy products are produced for their use values (their utility) and accounted in physical terms. By contrast, in money-based economies, commodities are produced for their exchange value and accounted in monetary terms.
