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Interest Rate Cap

An OTC interest rate derivative, or simply a contract on an interest rate whereby the seller (or the writer) pays...

Interest Rate Floor

An OTC interest rate derivative, or simply a contract on an interest rate whereby the seller (or the writer) pays...

Initial Deposit

The cash which a futures trader has to deposit in a margin account as security for guaranteeing a contract fulfillment at...

Initial Margin

The cash which a futures trader has to deposit in a margin account as security for guaranteeing a contract fulfillment at...

Interest Rate Derivative

A financial instrument (a derivative) whose value is based on the performance of an underlying interest rate. It gives the...

Interest Rate Floortion

An option on a floor. In other words, a floortion is an option to buy or sell an interest rate...

Interest Rate Caplet

An interest rate derivative (specifically, an interest rate option) which allows the holder to receive an interest rate payment during...

Interest Rate Floorlet

An interest rate derivative (specifically, an interest rate option) which allows the holder to receive an interest rate payment during...

IV

It stands for intrinsic value; generally, it is the effective monetary advantage which would be obtained when an option is...

Intrinsic Value

Generally, it is the effective monetary advantage which would be obtained when an option is immediately exercised. In call options,...