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Condor

In option parlance, a condor is a variation on a butterfly option, in which the two short options (sold options)…

CMO Swap

It stands for collateralized mortgage obligation swap. An interest rate swap (specifically an index amortizing swap) in which the amortization of…

Currency-Protected Swap

A cross currency basis swap which doesn’t involve currency conversion. For example, assume short-term interest rates in Japan are very…

Call Spread

An option spread which involves buying a call with a given strike price and expiration date while short selling another…

Call Reverse Knock-Out

A reverse knock-out option (RKO option) in which the barrier is at a level above the spot underlying price. This…

Call Around Market

A market, commonly for trading options on futures on European exchanges, in which brokers contact each other over the counter…

Cumulative Cap

A path-dependent interest rate option (specifically, an interest rate cap) which protects its holder against increases in total interest obligations…

Cumulative Floor

A path-dependent interest rate option (specifically an interest rate floor) which provides investors holding floating rate assets with protection against…

Convertible Asset Option Transaction

A par asset swap whose underlying asset (e.g. a convertible bond) is repackaged with an equity warrant stripped therefrom, with…

Contango Swap

A commodity swap in which one counterparty pays a rate based on the current difference between the spot price and…