A hedge that involves taking positions in a group of instruments in an attempt to earn a riskless return on...
A ratio spread which is constructed by involving deltas of options in order to create a neutral “overall” position. To...
A digital option that pays out if the underlying doesn’t touch (breach) a specified barrier. Therefore, the option includes a...
With respect to a credit derivative (e.g., a credit default swap), a name implies a borrower or reference entity or...
It stands for nth-to-default swap; a credit default swap (CDS) whereby the protection buyer makes a payment to the protection...
A swap that has additional or more complicated features as to a vanilla swap (standard swap). Non-standard swaps are designed...
A calendar spread that involves buying far-month call options and simultaneously selling an equal amount of near-month at-the-money (or slightly...
The option price sensitivity to a change in the price of its underlying. It represents the change in the price...
The difference between the open long contracts and the open short contracts a trader holds in a specific instrument or...
An exotic option that allows the holder to buy or sell an underlying asset at the best possible price that...