Nonessential features or enhancements which are designed to add more financial appeal to a particular instrument or transaction. For example,...
A currency market tool, similar to an option, which is used principally to avail of a move in the underlying...
A spread that captures the difference between the return attained by investing in a bond issued by an oil-producing company...
Also a vanilla swap. It is a standard swap structure in which swaps have generic or well-defined features, especially in...
A manipulative or disruptive trading practice whereby a trader buys or sells a large quantity of futures contracts during the...
An option on the best performing asset in a basket of assets during a designated period of time. The holder...
An exotic option whose payoff depends on whether the underlying asset price reaches a specified threshold (a predetermined knock-in or knock-out price) or not....
A floating-for-floating swap whose first floating rate leg is derived from the returns on a basket of underlying assets, such as equities, commodities, bonds, or even swaps. The...
A change in the sensitivity of an option (or generally a derivative) with the passage of time, holding everything else constant (e.g., volatility)....
A basis point (bps or BP) is 0.01 percentage point and equals $1,000 annually on a contract protecting $10 million...