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Diagonal Call Bear Spread

A diagonal call spread which involves selling a lower-strike call option and buying a higher-strike call option, with the overall...

Option Sensitivity

One of the multiple tools that measure how an option's price and risk are affected by the underlying parameter on...

Credit Portfolio Derivative

A credit derivative in which the underlying is a portfolio of credit names (credit portfolios). This type of derivatives is...

Dynamic Portfolio Swap

A credit portfolio derivative, specifically a portfolio default swap in which the protection buyer may change the actual composition of...

Equivalent Martingale Measure

A risk-neutral measure that is used to price derivative contingent claims such as average rate options by implementing stochastic discount…

Extinguishable Option

An option that expires or pays off if the underlying hits or exceeds the outstrike price. For example, in the…

Escalating Rate Swap

A variant on an off-market swap in which the fixed rate increases according to a predetermined schedule over the life…

DPS

An abbreviation for dynamic portfolio swap; a credit portfolio derivative, specifically a portfolio default swap in which the protection buyer may…

Deferred Start Swap

A swap which initiates at a forward start date. The fixed rate of the swap is agreed upon at the…

Debt Exchange for Common Stock

A convertible security which constitutes a listed structured product issued by a company on its stock and embedded with a…