An abbreviation for at-the-money spot; the situation in which the strike of an option is set equal to the spot rate (e.g., FX...
A straddle whose strike is equal to (or closest to) the price of its underlying asset. It is a combination of a call option and a option...
The situation in which the strike of an option is set equal to the spot rate (e.g., FX rate) at which the option delta is hedged....
A commodity swap which has a commodity index as underlying. In this swap, cash flows are intended to replicate the commodity index. The...
The payoff of a derivative contract that may move proportionally more or less than the price of its underlying. In general, derivatives subdivide into...
The payoff of a derivative contract that may move proportionally more or less than the price of its underlying. In general, derivatives subdivide into...
An option trading strategy where an investor buys a call and a put on the same underlying with the same expiration date but with...
A synthetic straddle that is constructed either with a long put and a long synthetic call (long put combined with long stock) or with a long call and a long...
A tool that measures the amount of change in the delta of a derivative (most often an option) in response to a unit change in...
A second-order greek that measures the instantaneous rate of change of an option’s delta with respect to the passage of time. In other words,...