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Short CDS

Selling a credit default swap (CDS); a short position in a credit default swap (CDS). It is equivalent to longing...

PoC

A put option on a call option. It gives the holder the right, without the obligation, to sell a call...

GARCH Option Pricing Model

An option pricing model which assumes that the evolution of the underlying asset return follows the generalized autoregressive conditional heteroskedastic...

Symmetric Payoff

A payoff (of a specific derivative instrument) whose value changes continuously and proportionally up or down in response to movements...

Reset Date

The date on which the periodic payment terms and conditions of a swap agreement are established. In other words, the...

Coupon Indexed Floater

A floating-rate note (floater) in which the periodic coupon depends on the performance of some embedded option with an underlying...

Forward Decumulator

The reverse of a forward accumulator. More specifically, it is a structured product that involves investors taking on the obligation...

Forward Accumulator

A financial derivative which an issuer sells to investors and is obliged whereby to sell shares of a specific stock...

CDS Credit Spread

The spread/ premium that reflects the a CDS market's view of both probability of default and an assumption about the...

Compounding Swap

A swap in which interest, instead of being paid, compounds forward until maturity. The interest is compounded forward until the...