The beta value is calculated by comparing price movements of the security and the price movement of the representative index over the past 2 years of weekly data.
The move should not only make the returns on hard assets more appealing, but it should also put some downside price pressure on the U.S. dollar index, or at least limit its upside movement.
Such a move by the Fed should be gold and commodity-market bullish, as it would not only make the returns on hard assets more appealing, but it would also likely put some downside price pressure on the U.S. dollar index, or at least limit its upside movement.
According to Zohar Hod of SuperDerivatives, a derivatives-pricing firm, there has already been movement away from LIBOR towards using overnight index swaps to discount cash flows on certain instruments.
And far more of the European's package is in bonuses and free shares linked to the performance of the company relative to its sector or an index, rather than in options which relate rewards solely to the movement of the company's share price.