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Reference Obligation

With respect to credit derivatives (e.g., credit default swaps, CDSs), it is an underlying asset (obligation) for which a debt...

Reference Asset

With respect to credit derivatives (e.g., credit default swaps, CDSs), it is an underlying asset for which a debt holder...

Metallurgical Derivative

A derivative which has a metallurgical commodity as underlying asset. Unlike financial assets, metallurgical commodities are valued based on their...

Accrual Tranche

A tranche that has some similarities to a zero-coupon bond. An accrual tranche (zero tranche) consists of Z bonds. By...

Stock Option Cycle

An option cycle defines the sequence of months in which the expiration dates of an option (stock option) can occur. To…

Short Term Interest Rate Futures

An interest rate futures contract in which the underlying is typically the three-month interest rate on a floating rate such as LIBOR, EURIBOR, etc. Some firms…

Short Diagonal Put Spread

A diagonal put spread which involves selling a higher-strike put option and buying a lower-strike put option, with the overall…

STIR Futures

An abbreviation for short-term interest rate futures. It is an interest rate futures contract in which the underlying is typically...

Synthetic Option

An option which is virtually constructed by trading the underlying asset and borrowing or lending, without buying or selling the...

Surf and Turf

An option combination, similar to a straddle, in which both the put and call legs have the same expiration date...