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Bear Call Spread

An option strategy whereby a number of call options are bought at a certain exercise price and an equal number...

Capped European-Style Call

A type of barrier options which is associated with a strike price and a cap barrier above the strike price.…

Constant Maturity Swap Spread Derivative

A financial derivative whose payoff depends on the spread between two swap rates of different maturities (e.g., the 10-year swap…

CTM Option

An abbreviation for close-to-the-money option; an option contract in which the underlying’s market price is very near to the strike…

Cut Time

The time on an option‘s expiration date after which the option no longer exists. It is at this time that…

Binomial Tree

A technique which is used to price options by graphically illustrating possible intrinsic values that an underlying asset (stock) may...

Bear Call

An alternative term for a bear call spread, which is an option strategy whereby a number of call options are...

Bear Call Ratio Backspread

A variant on call ratio backspread which involves selling a number of lower strike call options and buying a larger...

Bootstrap Method

A technique that is used to derive the zero-coupon yield curve from available market rates (spot curve figures) using interpolation....

CPW

It stands for collateralized put-write; an options trading strategy that involves short positions in put options and the use of…