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Perfect Hedge

A hedging investment/ position which completely eliminates the risk of another existing investment/ position. For example, a call option can...

Put Strip

An option trading strategy which is constructed by buying from three and up to eight put options. In this strategy,...

Put Ratio Vertical Spread

A ratio vertical spread that is constructed using put options. This involves buying one in-the-money put option and simultaneously selling...

Plain Vanilla Barrier Option

A standard barrier option where an event takes place at the first touch of the pre-specified barrier. In other words,...

Partial Lookback Call Option

A lookback call option which is associated with a partial lookback period (hence it is also called an anti-crash option)....

Putable FRN

A floating rate note (FRN) that can be given back to the issuer by the holder at put price before...

Puttable FRN

A floating rate note (FRN) that can be given back to the issuer by the holder at put price before...

Partial Lookback Period

With respect to option contracts and other types of derivatives, it is the partial period of time during which the...

Partial Window Double Barrier Option

A window double barrier option that features combinations of single barriers before and after the double barrier. More specifically, in...

Par CDS Spread

The value of the running spread that makes the value of a CDS (credit default swap) contract equal to par....