The option contract (option) is a zero-sum game (not a win-win situation) because the gains made by the option's buyer...

An equity call swap is similar in concept to a basis swap as both involve two variable legs. The former...

A limit option is, by definition, an exotic option whose payoff depends on whether the underlying asset price reaches a...

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

The futures contract is a zero-sum game (not a win-win situation) because if a trader is making money in futures...

A swap spread is the difference between the fixed interest rate and the yield of a Treasury security of the...

By definition, a cap is a series of options called caplets, each written on a specific forward interest rate. In...

Strike price and exercise price are often used "interchangeably " to denote the same: the price at which a derivative...