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Brownian Motion

A type of Markov process; a stochastic process, i.e., a group of random variables defined on the same probability space...

Target

The expected time to exercise an American option. It also refers to the probability of early exercise on an American option. In other...

Non-Path-Dependent Option

An option whose payoff depends solely on the events specified to take place upon expiration, rather than the path taken...

Non-Par Swap

An interest rate swap (specifically an off-market swap) where one or both of the assets underlying the swap sell/sells at...

NDS

It stands for non-deliverable swap; a synthetic derivative which is mainly used to replicate the net cash flows of a...

Non-Deliverable Swap

A synthetic derivative which is mainly used to replicate the net cash flows of a currency coupon swap or cross-currency...

Non-Deliverable Forward

A derivative instrument which is used for hedging the exchange rate risk associated with non-convertible currencies. By definition, a non-deliverable...

NDF

It stands for non-deliverable forward; a derivative instrument which is used for hedging the exchange rate risk associated with non-convertible...

Ratio Vertical Spread

A delta-neutral options strategy that involves more option short positions than option long positions on the same underlying and in...

Ratio Bear Spread

A variant on a ratio put spread , and a strategy similar to the ratio bull spread in almost all...