An option is a derivative contract giving the holder (buyer) the right, without the obligation, to trade (buy or sell)...

Both barrier options and limit options denote the same. By definition, it is an exotic option whose payoff depends on...

A zero-cost equity collar is one that results in zero net premium. The following example illustrates how this strategy works:...

Counterparty risk is the potential loss that results from a counterparty to a derivative contract (specifically a forward contract or...

A firm has issued a debt of $5 million nominal amount maturing in 2 years and is referenced to the...

The swap market allows borrowers (especially those at a disadvantage to borrower from banks) to lock in the best rates...

A stack hedge is a hedging technique and a front load hedge which involves concentrating most of the futures contracts...

A swap is a derivative contract entailing the exchange of two different payment streams over the life of the contract....

A swaption is an option which has a swap as underlying. It gives the holder (buyer) the right but not...

Swaps are typically quoted in two ways: as a spread (swap spread) and as an all-in rate: Spread: a swap...