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Touch-Up Option

A binary option that pays its holder a fixed amount (payoff) at expiration if the underlying price/ rate touches (i.e.,...

Capped Swap

An interest rate swap which involves the exchange of fixed rate payments for “capped” floating rate payments. The floating rate...

Step-Up Swap

An interest rate swap (IRS) in which the fixed-rate payments are increased over the term of the swap and up...

Step-Up Option

A step option which is equipped with an upward strike price reset mechanism effective within a limited period at a...

Touch Option

Any of several types of barrier options which activates, deactivates, or explodes in response to changes in the underlying whereby...

Bear Fence

A fence whereby a put option is long (long put) and a call option is short (short put), both being...

Equity Option

Typically, an exchange-listed option (first introduced in 1973) in which the underlying asset is an equity instrument such as a...

Hedge Ratio

The ratio of the value of long or short futures contracts to the value of the cash commodity being hedged....

Cross Currency Option

A cash-settled option that entails the exchange of one currency into another with the premium usually paid in a third...

CBAS

It stands for convertible bond asset swap; an asset swap whose underlying is a convertible bond. In terms of composition,...