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Asset Transformation

A type of transformation that is based on the use of interest rate swaps. It is the process whereby an investor lends money...

Contingent Premium Option

An option contract for which no premium is paid upfront by the buyer (long). However, a pre-specified premium should be paid if the option...

Incidents

 Expenses that are incidental, i.e., minor. In connection with a service or an item, this refers to gratuities and other...

Incidentals

 Expenses that are incidental, i.e., minor. In connection with a service or an item, this refers to gratuities and other...

Incidental Expenses

 Expenses that are incidental, i.e., minor. In connection with a service or an item, this refers to gratuities and other...

Capped Option

An option with an cap placed on payout or price, and which is automatically exercised when the underlying closes at or above (for a call)...

Interest Rate Caption

An option on a cap. In other words, a caption is an option to buy or sell an interest rate cap whereby the holder has...

Caption

An option on a cap. In other words, a caption is an option to buy or sell an interest rate cap whereby the holder has...

Low Exercise Price Option

A call option with an exercise price initially set deep in-the-money. Since it is highly likely that the option will...

LEPO

A low exercise price option, which is, by definition, a call option with an exercise price initially set deep in-the-money....