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Arithmetic Asian Call Option

An arithmetic Asian option in which the payoff is determined with respect to the arithmetic average price of the underlying...

European-Style Option

An option that can only be exercised on expiration date. An American-style option, in contrast, may be exercised at any...

Convertible Option Contract

A currency option which is combined with a trigger price feature whereby it is converted into a forward forex contract…

Long Call Synthetic Straddle

A neutral strategy (originally a long straddle) that is based on two legs involving two at-the-money calls or close to…

PCFP

It stands for put-call-futures parity; the relationship between the prices of calls (call options), puts (put options), and futures (futures…

Call CN

A crossing network (CN) that receives and directs confidential bids and offers into the pool where all are held until…

Roll Back

An options strategy that involves the replacement of a position by closing out one option contract with another that has…

Straddle Calendar Spread

An option trading strategy in which a near-month straddle is sold, and a far-month straddle is bought at the same…

Short Guts Spread

A guts spread that is established by combining short in-the-money calls and short in-the-money puts, with all options having the…

Short Synthetic Futures

A synthetic futures which consists of a short call and a long put: Short synthetic futures position = short call…