It stands for exchange-traded option; an option (exchange-traded derivative) that trades on organized and regulated exchanges, as opposed to options…
It stands for exchange of futures for physicals. By definition, it is a transaction that involves simultaneously taking a cash…
A zero-coupon swap in which the fixed rate receiver sells a third party (a dealer) an embedded option to convert…
A certificate which is issued by a bank to confirm that a customer, who has written a call option, actually…
A position in successive Eurodollar (ED) futures contracts. For example, a Eurodollar futures strip may be constructed by taking a…
A technique whereby banks can avoid taking physical delivery of commodities. It is similar to an exchange of futures for…
A futures contract whereby one counterparty is under obligation to buy from, or sell to, another counterparty a standardized amount…
An equity derivative, essentially a fixed-income security, whose coupon and/ or final principal repayment is/ are pegged to the return...
It stands for outstanding notional amount; the gross nominal or notional value of all derivatives contracts that have been concluded,...
A stack hedge that uses Eurodollar futures. The hedger stacks a number of these futures for subsequent periods in one…