Variation margin (VM) is the additional funds is required to top off the balance in a margin account to the...

The most common type of credit derivative is the credit default swap (CDS). It is a financial instrument that allows...

The entity that is the underlying for a credit default swap (CDS) or a similar structure. The entity is the...

A currency swap is similar, in concept, to an interest rate swap, but they differ quite remarkably in specific aspects....

A Parisian option is a crossover between a barrier option and an Asian option. However, the payoff of a Parisian...

Buying a put option (i.e., a long put position) is mainly a bet that the underlying price is going to...

In simple terms, a currency option is the right to buy or sell an amount of a currency at a...

Gamma is the second derivative of the option’s price (premium) with respect to the underlying price/ rate. It is usually...

A digital option (also a binary option) is an option which pays off a fixed amount of money if a...

At inception, swaps are transacted at zero cost to both parties. A swap with a zero cost is called a...