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Reverse Floating-Rate Swap

A swap in which the floating rate payments are inversely proportional to interest rate movements. The swap structure consists of...

Variable Notional Swap

A swap that varies in notional principal, rate or spread periodically to mimic predictably variable cashflows. As such, all notional,...

Moneyness

The relation between the strike price of a derivative (option) and the price of the underlying asset. That is, moneyness...

Money Spread

Another name for a vertical spread which constitutes an options strategy constructed by buying and selling the same numbers of...

Money Market Swap

A interest rate swap (typically, a fixed-floating swap) the expiration or termination dates of which follow the cycle of international...

Put RKO

It stands for put reverse knock-out; a reverse knock-out option (RKO option) in which the barrier is at a level...

Vertical Spread

An options strategy constructed by buying and selling the same numbers of the same options (whether puts or calls) but...

Variance Swap

An agreement to exchange the realized variance rate between the time of entering into the agreement and expiration date, based...

Price Return Equity Swap

A total return swap in which dividends are not passed through to the buyer. More specifically, one party-the equity swap...

Volatility Per Annum

A volatility measure that takes into account, in estimating volatility from historical data, only the days when an exchange is...