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Bearish Calendar Spread

A calendar spread which involves buying a call option with a set strike price and buying a longer-maturity call with…

Balance Guarantee Swap

A structured swap in which the swap counterparty agrees to adjust the notional principal amount in a fashion that matches…

Bernner-Subrahamanyam Approximation

A method that is used to calculate the value of an at-the-money call option (under the assumption of zero interest…

American-Style Option

An option that can be exercised at any time before, and including, expiration date. This type of options provides investors…

Average Price Put Option

An exotic put option where its payoff is determined by one of two values: zero (if the average market price…

Aggregate Exercise Price

It equals the number of shares in an option contract (typically 100 shares) multiplied by the exercise price in that…

Against The Box

A short sale which is carried out by the holder of a long position in the same stock being sold. The…

American Parisian Option

A Parisian option which gives the holder the right to exercise during the whole life span of the option, including...

Bull Put

An alternative name for a bull put spread which is an option strategy whereby a number of put options are...

Collect On Delivery

An option contract for which no premium is paid upfront by the buyer. However, a prespecified premium should be paid...