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DOTM Elasticity

An abbreviation for deep-in-the-money elasticity; the elasticity of an option where its value doesn't respond to changes in the underlying...

Deep Out of The Money Elasticity

The elasticity of an option where its value doesn't respond to changes in the underlying price. As such, it delta...

Deep In The Money

An option is said to be deep in the money when its exercise price is significantly below (for a call...

Deep Out of The Money

The state of a derivative (swaps, options, etc.) being in a heavily losing position. In case of options, this implies...

Flat Rate Forward

A forward contract/ futures contract that has a flat/ constant contango over the course of its lifespan. Contango occurs when...

Perpetual Floater

A floater that that has no redemption date (maturity date), i.e., whose principal never matures. The note only has perpetual...

Deep-In-The-Money Elasticity

The elasticity of an option where its value increases (for a call) and decreases (for a put) one-for-one with the...

Auto-Quanto Option

A quanto option in which the terminal payoff is denominated in a foreign currency, instead of the domestic one (the...

Individually Capped Basket Call

A call option that is based on an underlying basket of stocks whose individual returns at the end of each...

Individually Capped Call

A capped call which allows an investor to have exposure to a basket of stocks (e.g. 10 stocks), all of...