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Prepaid Forward Contract

A forward contract that calls for payment today and delivery of the underlying asset or commodity at a future date....

Outperformance Option

An option (specifically a dispersion option) which gives the holder the right to exchange one asset for another. It is...

Fixed Volatility

A volatility whose magnitude is theoretically set the same across different delta values of an option. The standard Black-Scholes model...

CMS Spread Swap

An interest rate swap in which one leg is pegged to a floating index, e.g., 3-month LIBOR, while the other...

CMS Spread Option

A spread option (an interest rate derivative) that pays a coupon based on the differential between the CMS rate over...

Flat Volatility

A volatility whose magnitude is theoretically set the same across different delta values of an option. The standard Black-Scholes model...

OBS Instrument

It stands for off-balance sheet instrument; a contract which is mainly based on a notional principal amount and represents a...

Off-Balance Sheet Instrument

A contract which is mainly based on a notional principal amount and represents a contingent liability on an institution. It...

Open Trade Equity

The unrealized gain or loss on open positions in futures. That is, an OTE is the net of unrealized profits...

OTE

It stands for open trade equity; this refers to the unrealized gain or loss on open positions in futures. That...