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RKO Option

It stands for reverse knock-out option; a knock-out option in which the barrier is triggered when the option gets in the money (ITM). The barrier level knocking...

ZCS

It stands for zero-coupon swap; an inflation-indexed swap whereby a single fixed payment is due at the unique (final) payment date...

Zero-Coupon Swap

An inflation-indexed swap whereby a single fixed payment is due at the unique (final) payment date for the fixed rate leg in...

Breakeven Swap

An inflation-indexed swap which has both cash flow legs paying out on maturity. This swap is based on an exchange of the...

Spread DV01

It captures the change in the market value of the credit default swap (CDS) position as a result of a one basis point shift...

IO Swap

It stands for interest-only swap; a form of cross currency swap that entails no exchange of principal in two different...

Tunnel Option

An option-based strategy that is mostly used in currency (and interest rate) markets and involves the purchase of a foreign exchange...

Annuity Swap

An amortizing swap in which an irregular payment streak is exchanged for a regular payment flow of the same present value. To...

Interest-Only Swap

A form of cross currency swap that entails no exchange of principal in two different currencies at maturity, and only the...

Accumulator

A financial derivative which an issuer sells to investors and is obliged whereby to sell shares of a specific stock or security...