Page 49 - PRIAA Glossary

DELIVERABILITY
The rate, in a given period, at which gas can be supplied from a storage facility. In underground storage, the rate would depend upon a number of factors, including reservoir pressure, reservoir rock characteristics and pipeline capacity. The term is also used for the volume of gas that
a field, pipeline, well, storage or distribution system can supply in a single 24-hour period.
DELIVERABLE OBLIGATION
Debt obligations of a reference entity that are eligible to be delivered upon physical settlement of a credit derivative contract after the occurrence of a credit event.
DELIVERY
The physical movement from seller to buyer of the underlying asset on which the derivative is based.
DELTA
The rate of change in price of an option with respect to the change in price of the underlying instrument, with all other factors held constant.
of the underlying:
DELTA NEUTRAL
The equation below illustrates the mathematical formulation for delta, where V is the value of the option and S is the price
∆= ∂V ∂S
A position that is designed to have an overall delta of zero, meaning that the portfolio’s value is relatively insensitive to movements in the price of the underlying asset.
DEMURRAGE
Revenue paid to a ship owner by the charterer for any time used for loading or discharging that is in excess of the allowed laytime per the charter agreement.
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