Another name for barrier option. By definition, it is an exotic option whose payoff depends on whether the underlying asset...
Buying a credit default swap (CDS); a long position in a credit default swap (CDS). It is equivalent to shorting credit risk, i.e., having a...
An option trading strategy that involves buying a call option at a given strike price and selling a call option...
A synthetic futures which consists of buying calls and selling the same amount of puts with the same strike price and expiration date. Long synthetic futures = (long...
An option trading strategy where an investor buys a call and a put on the same underlying with the same expiration date but with...
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...
An option that can be exercised on discrete dates before expiration. In other words, the holder has to mark two conditions for...
The payoff of a derivative contract that moves one-for-one with changes in the underlying price or rate. In general, derivatives subdivide into two common...
It is defined as positions which are taken in complex options that virtually impose no risk or a limited deal of risk such as long option, long...
It stands for limited-risk options, i.e., positions which are taken in complex options that virtually impose no risk or a limited deal of risk such as long option, long...
