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Amortizing Floor

An interest rate floor in which the successive floorlets cover decreasing notional principal amounts. In other words, the notional principal…

American-Style Option

An option that can be exercised at any time before, and including, expiration date. This type of options provides investors…

Average Price Put Option

An exotic put option where its payoff is determined by one of two values: zero (if the average market price…

Aggregate Exercise Price

It equals the number of shares in an option contract (typically 100 shares) multiplied by the exercise price in that…

Against The Box

A short sale which is carried out by the holder of a long position in the same stock being sold. The…

American Parisian Option

A Parisian option which gives the holder the right to exercise during the whole life span of the option, including...

Arithmetic Asian Put Option

An arithmetic Asian option in which the payoff is determined with respect to the arithmetic average price of the underlying...

Arithmetic Asian Call Option

An arithmetic Asian option in which the payoff is determined with respect to the arithmetic average price of the underlying...

Arithmetic Asian Option

A special type of Asian options (average price options) in which the payoff is determined with respect to the arithmetic...

Accrual Tranche

A tranche that has some similarities to a zero-coupon bond. An accrual tranche (zero tranche) consists of Z bonds. By...