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Callable RAN

A callable range accrual note (RAN); a range note that is imbedded with a call option. The embedded option allows…

CB Stripping

The process of breaking up a convertible bond (CB) into two structured products: an asset swap (credit component) and a…

CRIBS

It stands for cross index basis swap; a swap to whose underlying interest rate index (usually LIBOR) the so-called quantization…

Uout Put

It stands for up-and-out put; an up-and-out option that is deactivated if the price of the underlying exceeds a preset...

Uin Option

It stands for up-and-in option; a barrier option in which the right to exercise activates or becomes active if the...

CRIB Swap

It stands for cross index basis swap; a swap to whose underlying interest rate index (usually LIBOR) the so-called quantization…

TLO

An acronym for traffic-light option, which is an OTC option that belongs to the class of correlation derivatives, and which…

NARC

It stands for noon average rate contract, which is by definition an average rate option (ARO) or average rate forward...

GBM

It stands for geometric Brownian motion; a process that reflects the time-evolution of an asset price. It is a stochastic...

CUPS

It stands for currency-protected swap. A cross currency basis swap which doesn’t involve currency conversion. For example, assume short-term interest…