The liquidation of an option position while at the same time taking an essentially equivalent position in an option with…

The process of locking in a futures trader’s roll-over costs (i.e., hedging the trader’s roll risk) involving going long (buying)…

In general, any type of option in which the premium is reduced due to the sale of another option. In...

With respect to credit derivatives (e.g., credit default swaps, CDSs), it is an underlying asset (obligation) for which a debt...

With respect to credit derivatives (e.g., credit default swaps, CDSs), it is an underlying asset for which a debt holder...

A bond that pays interest only if the floating interest rate (such as LIBOR) or aninterest rate option underlying a…

An option-related strategy that is based on the replacement of a position by closing out one option with a near-month…

A reverse knock-in option (RKI option) that becomes in the money (ITM) once the defined barrier (for a call option, it...

It stands for reverse knock-in call; a reverse knock-in option (RKI option) that becomes in the money (ITM) once the...

A reverse knock-in option (RKI option) that becomes in the money (ITM) once the defined barrier (for a put option,...