The rate which results from a cash/futures arbitrage. More specifically, it is the rate of return that an investor can...
A shark forward that is used for fixing a forward price, while providing exposure to a spot movement in the underlying. This position...
A forward contract that allows firms to fix a forward price while benefiting from a predicted spot movement. It establishes a certain...
A type of market risk that arises from unfavorable changes in the correlation between the price of an asset underlying a quanto option and the volatility...
The difference between the CDS quotes in one currency and another. This spread could trade as a standalone product. For example, a...
A quanto spread that is constructed using two forward rates. It is mainly used to hedge quanto risk in the interdealer market. This spread can be...
A knock-out option in which the barrier is triggered when the option gets in the money (ITM). The barrier level knocking the option out would...
It stands for reverse knock-out option; a knock-out option in which the barrier is triggered when the option gets in the money (ITM). The barrier level knocking...
It stands for zero-coupon swap; an inflation-indexed swap whereby a single fixed payment is due at the unique (final) payment date...
The regular costs which are incurred by an entity in the normal conditions of operation. Normal cost consists of actual...