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Forward Hedge

A hedge that involves the use of foreign exchange forwards (FX forwards). It consists of an outright purchase of a...

Forward Starting Barrier Option

A partial time barrier option where the monitoring period starts at some time into the option's lifespan and ends at...

Forward Spreadlock

A spreadlock that is based on a forward contract. It allows the holder to lock in a specific number of...

Forward Cap

An interest rate cap that has a forward start date. In other words, the cap comes into effect at some...

Inflation Cap

An inflation derivative (cap) that pays out if inflation (as measured by percentage increase in the consumer price index) exceeds...

Covariance

A statistical measure of how much the returns on two risky assets move together. In other words, it expresses the...

FBDS

It stands for forward-starting basket default swap; a forward contract which obliges the holder to buy or sell a basket...

Call Albatross

An albatross spread that involves only call options. In other words, it is established by buying one in-the-money call, selling...

Forward-Starting Basket Default Swap

A forward contract which obliges the holder to buy or sell a basket default swap (BDS) at a specified time...

Static Option Replication

An option replication which is used to hedge a given portfolio involving the set up of another portfolio of approximately...