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Ratchet Option

A time-dependent option that locks in gains once predetermined price levels are reached by the underlying. The “ratchet” label refers...

Volatility Swap

As a volatility derivative, it is an agreement (swap) that entails exchanging the realized volatility between the time of entering...

Volatility Convexity

The sensitivity of vega as a function of volatility to a change in volatility. It captures the deviation from a...

Flow Derivative

A “leveraged” securitized product offering that is designed to provide maximum leverage with respect to currency denominations of a set...

Down-and-Out Option

A variant of a barrier option in which the right to exercise deactivates or becomes inactive if the actual “spot...

Prepaid Forward Price

The price the buyer pays to the seller today for a prepaid forward contract. It equals the underlying price minus...

Down-and-In Barrier Option

A variant of a barrier option in which the right to exercise activates or becomes active if the actual “spot...

Quanto Swaption

An swaption that gives the holder, already a counterparty to a quanto swap, the right, without the obligation, to cancel...

Cega

The first-order sensitivity (delta) of the price of a multi-asset option to a move in the correlation(s) between two underlyings...

Swap Assignment

A swap in which the payer of a given leg agrees to assign the other leg to a third party....