An option has convexity because of the non-linear relationship between its value and the price of its underlying asset. The...
The effect of change in one variable pertaining to an option, (particularly the out-of-the-money options/ OTM options) where the output...
The difference between the actual option premium and the option's estimated fair value. This difference arises because option sellers are...
Typically, a special type of a barrier option which refers to an option trading strategy that combines two call/ put...
A barrier option in which the barrier lies in the in-the-money side of the strike price. More specifically, it is...
One of three types of adjustments that should be made to the forward value of the underlying variable in a...
A cross-currency swap that provides no protection in terms of the final exchange notional amount. It allows the swap buyer...
Though it has several meanings in different contexts, it is usually defined as a tool that measures the sensitivity of...
A credit derivative which constitutes a forward contract on a credit spread. More specifically, it is a single period OTC...
An interest rate swap or a cross-currency swap in which payments are put off for a specified time in the...