It is a low risk, low payoff options strategy, designed to take advantage of a market or security that is…
A balance guaranteed swap in which one leg pays LIBOR plus a spread, while the other leg pays the average…
A vertical spread strategy which benefits from both high and low volatilities. However, the strategy is naturally bullish. In essence,…
A cross-currency swap that provides a cushion against a declining exchange rate. In case an investor is facing a depreciating…
Re-establishing an original position taken by an option buyer, undoing whereby a previously made conversion or reversal of an option…
One of the numerous names for corridor option. By definition, it is a path-dependent option that is typically embedded in…
A call or put option whereby the holder has the retroactive right to purchase (if a call) or sell (if…
A type of callable LIBOR exotic in which the underlying instrument is a plain-vanilla fixed-for-floating swap. Therefore, the coupon at…
An interest rate swap in which the floating rate is set in arrears. This means, the floating rate is determined…
A vertical spread with a bullish outlook. There are two main bull vertical spread strategies: the bull call spread and...