It is the rate which results from a cash/futures arbitrage. More specifically, it is the rate of return that an...

With respect to an employee stock option (ESO), it is an additional, new share option that is automatically granted when...

A convertible that is associated with an embedded put option, giving the issuer the right to put it (i.e., sell...

The process that involves restoring a bond portfolio to its former position before the original swap. This may usually take...

The mirror image of a bonus certificate in terms of payout profile. The holder will receive the bonus amount if...

A floater (floating-rate note) in which the coupon moves inversely to the movement of the reference rate. That is, if...

The leverage in which the so-called recourse borrowing is used. It is backed by collateral posted by the borrower. The...

A type of arbitrage that involves attempting to profit from specific deviations from interest rate parity by entering into a...

A bond that is associated with no risk (credit risk, default risk) over its term or time to maturity. In...

A bond that is associated with no risk (credit risk, default risk) over its term or time to maturity. In...