An interest rate floor which consists of a limited string of floorlets designed to hedge future floating rate receipts, specifically...

An average of a pay rate (bid rate) and a receive rate (offer rate) in an interest rate swap. A...

Mid-swap (MS) is the average of bid and ask swap rates used as a benchmark for calculating total interest rate...

An interest rate swap in which a floor is placed under the floating rate leg to a predetermined level. The...

A market tool that measures investors' feelings about stock option risk levels in a particular stock index (the S&P 100)....

The band or range in which volatility changes upwardly and downwardly, but not exceeding its upper and lower boundaries. In simple terms,...

An interest rate swap in which the floating rate is set in arrears. This means, the floating rate is determined based on the value...

The fixed rate in an interest rate swap expressed as a percentage rate instead of a premium or a discount to a specified reference rate. The...

An interest rate cap in which the successive caplets cover increasing notional principal amounts. In other words, the notional principal...

An action that is taken by an investor or trader whereby he/ she chooses not to exercise or offset a long...