Page 179 - PRIAA Glossary
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WAREHOUSE RECEIPT
A document certifying the existence and availability of a given quantity and quality of a commodity in storage in a licensed warehouse. It is recognised and used for delivery purposes in both cash and futures transactions. Since it is most often used for futures that have precious metals as an underlying commodity, it is also called a “vault receipt”.
WARRANTS
A derivative contract similar to a call option that gives the right, but not the obligation, to purchase shares from the issuer at a given price.
WASH SALES
A transaction made for tax purposes that seeks to recognise a capital loss and subsequently re-invest in the original position.
WEDDING CAKE
An option with a fixed payout based upon the fluctuations of an underlying floating rate, which is set within the parameters of predetermined barriers. The highest coupon is paid if the applicable rate remains within the inner range, whilst the coupon becomes gradually less if it moves outwards.
WEIGHTED AVERAGE RETURN
The return calculated using the weighted average formula which calculates the average value of a particular set of numbers with different levels of relevance. The relevance of each number is called its weight. The weights should be represented as a percentage of the total relevancy. Therefore, all weights should be equal to 100%, or 1.
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