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Long Combo

A bullish option strategy (a combo) which is based on selling out-of-the-money puts and buying out-of-the-money calls in order to...

Longevity Swap

A longevity derivative in which regular payments are made to a firm (investment bank, insurance company, pension fund, etc.) based...

Kurtosis

A parameter that measures the fatness of the tails of a probability distribution. It describes the shape of the probability...

Conditional Currency Option

A currency option (FX option or foreign exchange option) in which the premium payment is conditional on the actual movement...

Long Box

A complex option trading strategy (a box) that combines a lower-strike long synthetic futures and a higher-strike short synthetic futures....

Leveraged Floored Floating Rate Note

A structured product (floored floating rate note) in which a minimum level of coupon depends on a specific floor rate...

Kappa

The absolute change in option price in response to a percentage point change in volatility. Kappa is used by traders...

Vera

A second-order Greek that that relates the rate of change in a derivative's rho to changes in volatility. In other...

RHOVA

A second-order Greek that that relates the rate of change in a derivative's rho to changes in volatility. In other...

Leveraged Reverse Floater

A floating-rate note (floater) in which the reference rate is magnified by a factor λ (where λ > 1). Therefore,...