Gamma is the second derivative of the option’s price (premium) with respect to the underlying price/ rate. It is usually...

A situation that arises when the cost of financing a financial instrument or a physical asset (e.g., a commodity)- that...

The basis can develop a narrowing trend when the futures price of an asset/ commodity increases faster than the sport...

A methodology which is used by an exchange clearinghouse to calculate the number of outstanding futures contracts in order to...

The ratio of the value of long or short futures contracts to the value of the cash commodity being hedged....

A modified version of the barrier cap. It is an interest rate cap that comes in the form of an...

A modified version of the barrier floor. It is an interest rate floor that comes in the form of an...

The market wherein the prices of options and futures are negatively related to the closeness of delivery dates (of their...

An option that doesn't conform to the standard specifications and formalities of exchange-traded options. Such an option can expire on...

The relationship between the spot price and the expected future spot price whereby the futures price (in a commodity futures...