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PT Fixed-Strike Lookback Option

A fixed strike lookback option in which the lookback period (partial time- PT) starts at a preset date after the…

Preference Equity Redemption Cumulative Stock (PERCS)

An equity derivative (specifically an equity buy-write structure) that involves a mandatory conversion preferred stock (it resembles both convertible bonds…

Put Ratio Backspread

It is a volatile options strategy, a variant on a ratio backspread (specifically a credit spread), which is the exact...

Paper Profit

It refers to unrealized capital profits in an open position in options or futures (or generally in an investment portfolio).…

Paper Loss

It refers to unrealized capital losses in an open position in options or futures (or generally in an investment portfolio).…

Payment Floor

A path-dependent interest rate option (specifically an interest rate floor) which provides investors holding floating rate assets with protection against…

Parisian Down-and-In Option

A Parisian option in which the holder’s possibility and right to exercise is enlivened if the underlying price reaches a…

Payment Cap

A path-dependent interest rate option (specifically, an interest rate cap) which protects its holder against increases in total interest obligations…

PCFP

It stands for put-call-futures parity; the relationship between the prices of calls (call options), puts (put options), and futures (futures…

Put Diagonal Calendar Spread

A diagonal calendar spread (or a calendar diagonal spread) which constitutes an option trading strategy based on the selling of...