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Momentum Cap

An option in which the cap level is based on the last rate set for the underlying floating rate (LIBOR)....

Mexican Index-Linked Euro Security

A nonstandard American call option on the dollar value of the Mexican stock index, the Bolsa Mexicana de Valores. This...

Long Straddle

A straddle whereby an investor simultaneously buys two options (a call and a put) on the same stock, index, interest…

Time Discount Option

A contingent premium option in which premium is only paid at expiration date. The amount of the premium depends on…

Short Term IRS

An interest rate swap (IRS) whose maturity doesn’t exceed 2 years. A short-term interest rate swaps (STIRS) involves the settlement…

Roll Back

An options strategy that involves the replacement of a position by closing out one option contract with another that has…

Reverse ZC Swap

A zero coupon swap (ZC swap) in which payments are reversed. That is the zero coupon payment is made at…

Short Calendar Put Spread

A calendar put spread that involves selling a far-month put and buying a near-month put of the same strike price.…

Short Calendar Call Spread

A calendar call spread that involves selling a far-month call and buying a near-month call of the same strike price.…

Short Gut Spread

A gut spread that is established by combining short in-the-money calls and short in-the-money puts, with all options having the…