Filter by Categories
Accounting
Banking

Derivatives




Credit Spreadlock Option


A credit derivative (specifically a spreadlock option) that has a strike spread such that the payoff at maturity is determined based on the difference between the market spread and the strike spread at that time. If the option is worth exercising, i.e., the difference between the two spreads is positive from the perspective of the holder, the holder will exercise the option. Otherwise the option will expire worthless.



ABC
Derivatives have increasingly become very important tools in finance over the last three decades. Many different types of derivatives are now traded actively on ...
Watch on Youtube
Remember to read our privacy policy before submission of your comments or any suggestions. Please keep comments relevant, respectful, and as much concise as possible. By commenting you are required to follow our community guidelines.

Comments


    Leave Your Comment

    Your email address will not be published.*