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Option Convexity

The effect of change in one variable pertaining to an option, (particularly the out-of-the-money options/ OTM options) where the output...

Convexity Risk Premium

The difference between the actual option premium and the option's estimated fair value. This difference arises because option sellers are...

Turbo Option

Typically, a special type of a barrier option which refers to an option trading strategy that combines two call/ put...

Turbo Warrant

A barrier option in which the barrier lies in the in-the-money side of the strike price. More specifically, it is...

Convexity Adjustment

One of three types of adjustments that should be made to the forward value of the underlying variable in a...

Turbo Cross-Currency Swap

A cross-currency swap that provides no protection in terms of the final exchange notional amount. It allows the swap buyer...

Convexity

Though it has several meanings in different contexts, it is usually defined as a tool that measures the sensitivity of...

Credit Forward

A credit derivative which constitutes a forward contract on a credit spread. More specifically, it is a single period OTC...

Deferred Swap

An interest rate swap or a cross-currency swap in which payments are put off for a specified time in the...

Credit Collar

A variation of an equity collar that allows investors to generate cash proceeds while still receiving downside protection (though at...