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Convexity Hedge

An hedged position in which the investor purchases more than one call option for each unit of the underlying he…

Credit Swap

An swap agreement which is entered into by two counterparties, a buyer and seller of credit protection, and whereby the...

Credit Contingent Swap

A credit derivative (specifically, a hybrid credit derivative) that entails the exchange (swapping) of two different legs of payment, one...

Covered Call Write 

A combination of a call option and the underlying asset. The buy-writer becomes a fixed income investor if the underlying…

Covered Interest Arbitrage 

A straightforward currency swap in which the two counterparties simultaneously exchange currencies at the spot and forward rates. This swap…

Covered Arbitrage 

An arbitrage technique that is based on the creation of a synthetic foreign exchangeforward contract using two zero-coupon debt instruments…

Covered Short Strangle

A variant on covered short straddle, where risk is high and reward is limited, but it differs in that the...

Covered Short Straddle

A high risk, limited reward options strategy similar to the covered short call (also called covered call write). That means,...

Covered Option Strategy

An synthetic option strategy that involves a position in an option combined with a position in the underlying. The strategy...

Call on Cliquets

An exotic cliquet that is subject to a call (call option) with a global strike, where the call has its...