A payoff (of some derivative instrument) whose amount is a convex function of the value of the underlying instrument. Generally,…

A physical asset such as base metals, precious metals, crude oil, natural gas, heating oil, gasoline, wheat, rice, livestock, and…

An acronym for short-term interest rate option. By definition, it is an interest rate option in which the underlying is...

A short-term (usually 30-day) option on a futures contract whereby the option expires before its underlying futures reaches maturity. If…

A barrier option that knocks in or out after the underlying spends a preset amount of time above or below…

The maximum of zero and the amount by which the daily average temperature exceeds 65 Fahrenheit. The average temperature is…

A derivative whose underlying is the freight price/rate in the shipping markets (such as the container ship markets). Shipping derivatives...

A collection of options (exotic options) that developed beyond the boundaries and limitations of plain vanilla options, in the decade...

A breed of exotics that has developed as simple or standard additions/ features to derivatives (as opposed to 2nd generation...

A breed of exotics that has developed as simple or standard additions/ features to derivatives (as opposed to second-generation exotics...