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Long Synthetic Straddle

A synthetic straddle that is constructed either with a long put and a long synthetic call (long put combined with long stock) or with a long call and a long...

Gamma

A tool that measures the amount of change in the delta of a derivative (most often an option) in response to a unit change in...

Limited Exercise Option

An option that can be exercised on discrete dates before expiration. In other words, the holder has to mark two conditions for...

Option Alpha

This second-order greek expresses the quality of gamma in terms of the time decay (rent). Therefore, it indicates the quality of the earnings from...

Receiver Swaption

A swaption (option on a swap) that gives the holder the right, without the obligation, to enter into a swap as the fixed-rate receiver...

Receiver Swap

A put option on a swap in which the buyer has the right, but is not obliged, to enter into a swap wherein he...

Cartwheel

A complex options trading strategy which involves taking a long position in a ratio call spread (call backspread) and a...

Quanto Spread

The difference between the CDS quotes in one currency and another. This spread could trade as a standalone product. For example, a...

Synthetic Quanto Spread

A quanto spread that is constructed using two forward rates. It is mainly used to hedge quanto risk in the interdealer market. This spread can be...

Reverse Knockout Option

A knock-out option in which the barrier is triggered when the option gets in the money (ITM). The barrier level knocking the option out would...