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Foreign Exchange Collar

An option-based strategy which is established by purchasing a European-style option (the cap) and selling of another (the floor), both...

Mortgage Prepayment Floor

An OTC option (floor) that provides the holder, usually a mortgage company, with protection from a potential loss in return...

Mortgage Prepayment Cap

An OTC option (interest rate cap) that provides the holder, usually a mortgage company, with protection from a potential loss...

Participating Interest Rate Agreement (PIRA)

An interest rate collar that allows an investor or borrower to mitigate or limit exposure to unfavorable interest rate changes...

Participating Swaption

An option that allows the holder to enter into a participating swap. In other words, the holder has the right...

Participating Swap

A swap which allows one of the counterparties to participate in favorable movements in the underlying rate/price, while giving that...

Fixed Volatility

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

Flat Volatility

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

Dual Strike Cap

A modified version of the barrier cap. It is an interest rate cap that comes in the form of an...

Chooser Cap

An interest rate cap (particularly, a flexible cap) that gives the holder the right to choose a specific number of...