option-adjusted spread
Definition
OAS. The price of an option compared to the spot rate of Treasuries. The option-adjusted spread equates the present value of the underlying security's cash flows to the market price of the security.
Use this term in a sentence
“ I had a look at the option-adjusted spread and it was something that confused me, but interested me a lot. ”
“ You should try to keep an open mind when thinking about an option-adjusted spread and use it if it will help. ”
“ Jack could clearly sea that his OPTION-ADJUSTED SPREADwas clearly beyond his or his business partners ability to properly manage . ”
