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Bear Fence

A fence whereby a put option is long (long put) and a call option is short (short put), both being...

Equity Option

Typically, an exchange-listed option (first introduced in 1973) in which the underlying asset is an equity instrument such as a...

Hedge Ratio

The ratio of the value of long or short futures contracts to the value of the cash commodity being hedged....

Cross Currency Option

A cash-settled option that entails the exchange of one currency into another with the premium usually paid in a third...

CBAS

It stands for convertible bond asset swap; an asset swap whose underlying is a convertible bond. In terms of composition,...

Forward-Start Cap

An interest rate cap that has a forward start date. In other words, the cap comes into effect at some...

Callable Zero Coupon Swap

A zero coupon swap (ZCS) in which the zero coupon leg has the right, without the obligation, to call off...

Double No-Touch Option

An option, also known as a range binary option or a double lock-out option, whereby an investor can receive a...

Convertible Bond Asset Swap

An asset swap whose underlying is a convertible bond. In terms of composition, it is a combination of an asset...

Forward-Starting IRS

An interest rate swap (IRS) that involves the future exchange of two series of cash flows. This swap allows hedgers...