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Hard Barrier Option

A barrier option which has a hard barrier (i.e., a level rather than a range). This option is typically knocked…

Hard Commodity

A commodity that is the product of mining and extractive processes (such extraction of metals, minerals, oil, coal, etc). This…

GAPP Futures

It stands for gas-at-the-pump futures. It is a futures contract in which the underlying is the retail price of gasoline.…

Far Option

The longer-date option in an option spread. That is, the part of an option spread (such as a calendar spread)…

Edokko Option

A barrier option that aims to prevent a knock out. Pricing of such an option depends on the amount of…

Early Exercise

The exercise of an American-type option or other security prior to its maturity date. An option holder may choose to...

Acceleration

A clause in a contract, agreement or contractual obligation, such as a swap, whereby it is allowable to terminate the…

ABCDS

An acronym for asset-backed credit default swap. It is a credit default swap on a mortgage-backed security or an asset-backed…

Accelerated Vesting

An option that a company offers to an employee in a stock ownership (stock purchase or stock option agreement) or…

Xccy Call

A currency option that confers on the holder the right, but not the obligation, to purchase an amount of foreign…