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Front Spread

A spread option position whereby the price of the option purchased (long option) exceeds the price of the option sold...

Forward Rate Bias

The empirical tendency of higher interest rate currencies' return to outperform the return of lower rate currencies. This can be...

Fixed-Tail Bermudan Swaption

A Bermudan swaption whose maturity date is set as the last reset date of the underlying swap. It is also...

Forward Rate Bracket

An alternative term for a range forward contract. By definition, it is a variation on a regular forward contract which...

Mulligan Cap

An interest rate cap in which the number of caplets are less than reset periods. This feature makes a flexible...

Flexible Cap

An interest rate cap in which the number of caplets are less than reset periods. This feature makes a flexible...

Capped Floater

A floating-rate note (floater) which entails the payment of a coupon only up to a preset maximum level of the...

Money Market Futures

A standardized, exchange-traded contract to buy or sell a money market security at a set price on a particular future...

Straddle Purchase

An option combination that longs a call and a put simultaneously in order for an investor to protect himself/ herself...

Straddle

An option combination that longs a call and a put simultaneously in order for an investor to protect himself/ herself...