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Long-Dated Option

An option which expires after more than a year (e.g. 1, 2 or 3 years). Traders buy long-dated options with...

Long-Dated Swap

A long-term swap agreement between two parties to exchange two different sets of cash flows for a minimum of time...

Dividend Protection

Adjusting the strike price of an OTC option by the amount of dividends paid on the underlying asset/ stock. This...

Step Option

A path-dependent option which is parameterized by a finite knock-in (knock-out) rate. The payoff at expiration is equal to that...

Collateralized Swap

A swap whereby one of the counterparties (or both) post collateral to guarantee fulfillment of a contractual obligation. The collateral...

Strip

In options realm, a strip is a combination of options whereby two puts and one call are bought on the...

Call Strip

An option trading strategy (a standard strip) which is constructed by buying a number of call options (from three and...

Log Contract

An exotic option (specifically a single-payout option) that makes payments based on the logarithm of the price of its underlying...

Dark Spark Spread

A spark spread that captures the gross margin reflecting the economics of a coal-fired power plant. More specifically, it refers...

Dark Spread Option

An option on the dark spread, i.e., on the gross margin from electricity generated using coal. More specifically, this option...