A money-market instrument which constitutes a time draft drawn on and accepted by a bank. A banker’s acceptance (BA) provides…

An option trading strategy which is similar to a conversion/ reversal but without involving the underlying leg. In its reversal…

An option on a forward rate agreement that gives the holder the right, without the obligation, to buy an FRA…

A synthetic option that is based on a short position in the underlying asset and a long position in a…

A legally binding contract between two parties to sell/ purchase, on future delivery terms, a specific quantity of shares of…

A short-term or temporary curb which is posed on the trading of particular stock index futures contracts in order to…

An option that expires or pays off if the underlying hits or exceeds the outstrike price. For example, in the…

A diagonal calendar call spread which is constructed by selling a long-term at-the-money call option and buying a short-term out-of-the-money…

The interest rate which a certificate of deposit (CD) bears. CD rates are fixed for the term of the CD,…

A round-tripping sale (or double sale) in which one party (actually the lender) sells another (actually the borrower) an object…