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Macroeconomic Option

An option in which the underlying benchmark is a macroeconomic variable or index. This option is pegged to the level...

Unwind Tranche

For large unwinds (e.g. $100 million or more), a swap transaction can be sliced up into several pieces (tranches) either...

European Capped Call

A capped call which is only exercisable at maturity. A capped call, by definition, is a call option modified to...

Vanilla Swap

A standard swap structure in which swaps have generic or well-defined features, especially in relation to coupons, notional principal, swap...

Gut Iron Butterfly Spread

An option trading strategy, similar to an iron butterfly, which involves buying and selling both calls and puts at three...

Plain Vanilla Swap

A standard swap structure in which swaps have generic or well-defined features, especially in relation to coupons, notional principal, swap...

Iron Butterfly

An option trading strategy which involves buying a straddle and selling an out-of-the-money strangle on the same underlying. The order...

Naked Credit Default Swap

A credit default swap (CDS) in which the buyer doesn’t own, or has a long position in, the underlying corporate...

Macroeconomic Swap

A swap that ties the floating rate leg to a macroeconomic variable or reference index such as the growth rate...

Puttable Floater

A floater that can be given back to the issuer by the holder at put price before maturity date. In...