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Credit Arbitrage Swap

An interest rate swap in which two counterparties exchange their credit comparative advantages (in terms of credit rating or creditworthiness)...

Credit-Linked Note

A credit-linked hybrid that combines a note with a credit default swap. The face value of the note payable at...

Worse-Of Option

An option to exercise on a bundle of long forwards (forwards owned or purchased). The forwards have a maturity date...

Option Leverage

Options are highly leveraged investments. In the underlying price moves favorably, an investor could earn much bigger percentage gains on...

Short the Basis

The purchase of futures contracts as a hedge against a short position in futures or options whereby a trader is...

Worst-of-Two Option

An exotic option (specifically a type of an either-or option or an alternative option) whose payoff is based on the...

Fixed Price Swap

A swap that is used to fix the price of a given commodity such as jet fuel or gas. It...

Fixed Notional Swap

A swap whose notional principal amount (NPA) doesn't vary over its tenor. Each cashflow is calculated using a constant notional...

Fixed Strike Asian Option

An option (Asian option) whose payoff depends on the average price of the underlying asset during at least some part...

Fiva

A forward or futures contract whose underlying is implied volatility. The parties to the contract trade implied volatility: buyers are...