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Par Asset Swap

An asset swap in which one counterparty delivers a risky asset (bond, floater, etc) to the other in return for par value. In other words, one...

Payer Swap

A call option on a swap in which the buyer has the right, but is not obliged, to enter into...

Pin Risk

The risk that arises when the price of an asset underlying an option approaches its strike price as it gets closer to expiration date. This is...

Put Leverage

An option leverage that measures the sensitivity of a put option’s price to changes in the underlying price. In other words, it is...

Put Option

An option contract that gives its holder (the buyer) the right, but doesn’t oblige him/ her/ it, to sell a certain quantity...

Put

An option contract that gives its holder (the buyer) the right, but doesn’t oblige him/ her/ it, to sell a certain quantity...

Pay Later Option

A type of binary options whose stated strike price is different from its payoff strike. That is, there is a...

Put Backspread

A variant on a bear put spread, and a strategy similar to the bull ratio spread in almost all aspects...

Partially Protected ELN

An equity-linked note (ELN) that allows the investor a full participation on the upside, while its protection on the downside...

Protection Buyer

A party to a credit default swap (or any other type of swap) that pays the other counterparty (known as...