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Credit Spread

The difference between the values of two options, that is made when the value of the one sold exceeds the value...

CDS Spread

A premium which is paid quarterly by the protection buyer in a credit default swap (CDS) to the protection seller. It is quoted in basis points per...

Rent

The amount of the change in an option price with respect to the decrease in time to expiration. The option value declines or decays...

Time Decay

The amount of the change in an option price with respect to the decrease in time to expiration. The option value declines with the passage...

Short Forward Contract

A short position in a forward contract whereby an investor agrees to sell the underlying asset on a specified future date for a preset...

Russian Option

A variant on American option, and a perpetual lookback option without a predetermined expiration date (and hence the other name: perpetual American lookback option)....

Volatility Spread

A delta-neutral option spread which is usually established in order to take a view or speculate on changes of market volatility...

CLD

It stands for credit-linked deposit; a credit-linked hybrid that combines a deposit with a credit default swap that the investor (depositor) sells to the deposit...

Credit-Linked Deposit

A credit-linked hybrid that combines a deposit with a credit default swap that the investor (depositor) sells to the deposit taker. The principal amount of the...

Gamma Swap

A variation on variance swaps which weights the periodic squared return of the underlying by the ratio of current price to initial...