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Stoption

Another name for barrier option. By definition, it is an exotic option whose payoff depends on whether the underlying asset...

Flavored Swap

A swap that has exotic or complex structure whereby it is distinguished in its key underlying economic variables from basic swaps. Flavored swaps...

Barrier Option

An exotic option whose payoff depends on whether the underlying asset price reaches a specified threshold (a predetermined knock-in or knock-out price) or not....

Touch Rebate Barrier Option

A rebate barrier option where a rebate is paid if the barrier has not been touched (for knock-in options) or has been...

Asset Mismatch

A situation that arises when the risk associated an asset is to be hedged but there is no futures contract on that...

ASW

An abbreviation for asset swap spread; a spread that is usually paid (when necessary) by the seller of an asset swap, in addition to...

Long CDS

Buying a credit default swap (CDS); a long position in a credit default swap (CDS). It is equivalent to shorting credit risk, i.e., having a...

CollVA

It stands for collateral value adjustment/ collateral valuation adjustment; the pricing adjustment made for a collateralized derivative. It represents the cost of...

Fugit

The probability of early exercise on an American option. In other words, it refers to the amount of time that is left until...

Snowball Swap

A structured swap which consists of a funding leg and a coupon payment stream, whereby the coupon payment made on a given date is...