An extendible swap which combines a fixed payer swap and a payer swaption. For example, an investor buys a swap...
A futures contract whose underlying is pollution rights. In the United States, it refers to a futures contract based on...
A multi-factor or multi-asset option whereby the holder (buyer or long), in case of a call, is entitled to receive...
A type of maximum option in which the payoff is the maximum norm achieved by its underlying(s) over its life....
An interest rate swap (specifically a LIBOR Function Swap) in which the floating rate is calculated using polynomial equations (e.g.,...
A strategy of allocating funds within a portfolio using derivatives to neutralize the market risk inherent in this portfolio. It...
The risk that arises from the tendency of a derivatives user/ dealer to judge a counterparty to a derivatives transaction...
The risk that arises from naive optimism or a confidence bordering on arrogance by large institutional investors dealing in derivatives....
The quoted margin for a par floater. In other words, it is the spread over a floating rate (e.g., LIBOR)...
The spread over LIBOR (or generally a floating rate) that is paid on the floating leg of an asset swap...