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Swap Close-Out

The process of terminating a swap agreement by mutual consent of the parties at an early date before maturity. The...

Correlation Delta

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

Swap Desk

A group of individuals who run a portfolio of swaps (interest rate swaps) for a financial institution (such as commercial...

Quanto Put

A quanto option which gives the holder the right to sell a foreign asset (e.g., a share of stock) and...

Foreign Exchange Floor

An option contract on foreign exchange whereby the seller (or the writer) pays the buyer, at periodic payment dates, the...

Accumulator Out-Option

A accumulator option with an American-style knock-out barrier. If the underlying trades through that barrier on a fixing date, the...

Tranche-Loss CDS

A basket-linked credit default swap (basket-linked CDS) which protects the buyer (the long) from a range of cumulative losses of...

Accumulator In-Option

An accumulator option with an American-style knock-in barrier. If the underlying trades through that barrier on a fixing date, the...

Z-Tranche

A tranche that has some similarities to a zero-coupon bond. A Z tranche (zero tranche) consists of Z bonds. By...

Ninety-Ten Strategy

A multiperiod option purchase strategy that seeks to avoid large losses in any single investment period by committing 10% of...