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Harmonic Average

An average that is computed by taking the inverse of the arithmetic average of inverse values, as in the following...

Hedged Inverse Floater

A combination of an inverse floater and a principal currency swap which is designed to hedge a direct exposure to...

Cancellable Snowball Swap

A snowball swap in which a floating rate is exchanged at payment dates (e.g., semi-annually) with a complex structured coupon...

Cancellable CDS

A combination of a plain vanilla credit default swap (CDS) and a credit default swap option (CDS option) on the...

Stochastic Process

A stochastic process is a number of random variables defined on a given probability level and indexed by the time...

STCDS

It stands for standardized tranche credit default swap; a type of first loss credit default swaps (FLCDS) or tranche loss...

Second NTM

It stands for second near the money; Options whose market price is very near to the strike price (exercise price)-...

Second Near the Money

Options whose market price is very near to the strike price (exercise price)- very much "near in the money", so...

High-Low Option

A cash-settled call option that combines two lookback options and where it pays the difference between the high and low...

European Parisian Option

A Parisian option which gives the holder the right to exercise only at the option’s maturity date. In other words,...