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Short Albatross

A complex and versatile option trading strategy (basically an albatross spread) which involves selling one deep in-the-money option, buying one...

Quality Spread Differential

The difference in quality spread as measured at two different maturities. This difference goes hand in hand with maturity length...

Quality Spread

A measure of the quality of a borrower as perceived by the market. It varies over different maturities and for...

Back-To-Back Swap

A combination of two swaps, namely two cross-currency swaps or two interest rate swaps for the purpose of effectively extending...

Asset Swap Switch

An asset swap which has an embedded option (a spread option between the substitutable assets) allowing the holder to substitute...

Asset Allocation Swap

An equity swap in which the equity return is linked to whichever is higher of two equity indices. For example,...

Discrete Barrier Option

A barrier option in which the barrier level is only monitored discretely at specific dates, rather than continuously. In practice,...

DITM

It stands for deep in the money; an option is said to be deep in the money when its exercise...

DITM Elasticity

An abbreviation for deep-in-the-money elasticity; the elasticity of an option where its value increases (for a call) and decreases (for...

Mid Swap Rate

Mid-swap (MS) is the average of bid and ask swap rates used as a benchmark for calculating total interest rate...