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Limited-Price Indexation Swap

An inflation swap (a zero-coupon swap) in which a fixed amount is exchanged at a specified maturity for the limited-price...

Range Reset Forward

A structured option that allows the holder to receive an improved exchange rate compared to the equivalent forward exchange rate...

Limited-Price Index Swap

An inflation swap (a zero-coupon swap) in which a fixed amount is exchanged at a specified maturity for the limited-price...

Ito’s Lemma

A stochastic process where the change in the price of a derivative during each short period of time has a...

Hedge and Forget

A hedge strategy in which an investor makes no attempts to adjust the hedge once its has been set up....

Bottom Vertical Combination

An option combination that constitutes a long position in both a call and a put which have the same expiration...

Black Box Transaction

A portfolio default swap whose exact composition of obligors is not disclosed to the protection seller (in a credit derivative...

At-The-Money Elasticity

The elasticity of an option where its value increases (for a call) or decreases (for a put) almost one-for-two with...

At-The-Money Volatility

A tool that measures the calculated or implied mid-rate volatility for an ATM option for a specific expiration date. In...

Jump Process

A stochastic process which describes the movements in the price of a derivative's underlying through time. In this process, the...