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Unmatched Swap

An interest rate swap or cross-currency swap which is not matched by an offsetting/ mirror swap or other financial asset…

Color

A sensitivity measure for options and other derivatives which calculates the change in gamma in response to the passage of…

Markov Process

A stochastic process with the Markov property that the distribution of the future process depends solely on the present state,…

Last Notice Day

The last day on which notices of intent to deliver on futures may be issued. On this day, which occurs...

Convertible Hedge

An arbitrage strategy that is based on buying a convertible security (like convertible bonds) and simultaneously selling short the issuing…

Capped Constant Matuirty Credit Default Swap

A constant maturity credit default swap (CMCDS) in which the rate is capped at a specific level. This swap combines…

Cash Futures Swap

A transaction that involves simultaneously taking a cash position and futures position on the same underlying. That means, a position taken…

Exponential Brownian Motion

A process that reflects the time-evolution of an asset price. It is a stochastic process commonly used in finance to...

Collared Floating Rate Note

A floating-rate note (floater) whose coupon payments fall within an embedded collar. This means the coupon is capped at a...

GBM

It stands for geometric Brownian motion; a process that reflects the time-evolution of an asset price. It is a stochastic...