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Arithmetic Asian Put Option

An arithmetic Asian option in which the payoff is determined with respect to the arithmetic average price of the underlying...

European-Style Option

An option that can only be exercised on expiration date. An American-style option, in contrast, may be exercised at any...

Convertible Option Contract

A currency option which is combined with a trigger price feature whereby it is converted into a forward forex contract…

PCFP

It stands for put-call-futures parity; the relationship between the prices of calls (call options), puts (put options), and futures (futures…

Put Provision

A provision, attached to a puttable bond, which allows the bondholder to put (give back) the bond to the issuer…

Put Bond

A bond which is payable at par to its holder on demand once the lock-out or deferment period expires. This…

MOPS

It stands for municipal option put security; a municipal fixed income security (e.g., a municipal bond) that comes with a detachable…

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…

Straddle Calendar Spread

An option trading strategy in which a near-month straddle is sold, and a far-month straddle is bought at the same…

Short Put Calendar Spread

A put calendar spread that involves selling far-month put (short put) and buying near-month put (long put) of the same…