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Z-Tranche

A tranche that has some similarities to a zero-coupon bond. A Z tranche (zero tranche) consists of Z bonds. By...

Z-Spread

It stands for zero-volatility spread. The basis points which are added to the yield at each point on the spot...

ZSC

It stands for zero-strike call option; a call option in which the strike price is set at zero. The underlying...

SPOT

It stands for single payment options trading. A type of currency options trading in which an investor can choose whether...

Put RKO

It stands for put reverse knock-out; a reverse knock-out option (RKO option) in which the barrier is at a level...

VaR

It stands for value-at-risk; the amount of loss that is expected, at some specific or pre-specified probability (confidence level), to...

PVBP

It stands for price value of a basis point; a method of measuring the price sensitivity of a fixed-income security...

DITM

It stands for deep in the money; an option is said to be deep in the money when its exercise...

DITM Elasticity

An abbreviation for deep-in-the-money elasticity; the elasticity of an option where its value increases (for a call) and decreases (for...

DVOX

The sensitivity of a credit spread. It measures the change in fair value of a credit derivative (e.g., a credit...