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Exponential Brownian Motion

A process that reflects the time-evolution of an asset price. It is a stochastic process commonly used in finance to...

European-Style Option

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

Edokko Option

A barrier option that aims to prevent a knock out. Pricing of such an option depends on the amount of…

Early Exercise

The exercise of an American-type option or other security prior to its maturity date. An option holder may choose to...

Equity Hybrid Derivative

A hybrid derivative whose underlying is an equity instrument or similar instruments, but it combines it with other asset classes...

Eligible Swap Participant

A party which is permitted to enter into a swap agreement without having to comply with otherwise applicable regulations. Exemption...

Exit Option

An option which is embedded in another derivative (or generally a financial instrument) so that an investor is allowed to...

ETO

It stands for exchange-traded option; an option (exchange-traded derivative) that trades on organized and regulated exchanges, as opposed to options...

EKO Option

It stands for early knock-out option; a knock-out option (KO option) which knocks out or deactivates if the barrier is...

Early Knock-Out Option

A knock-out option which knocks out or deactivates if the barrier is hit during the monitoring period (window). If the...