First generation exotics are a breed of exotics that has developed as simple or standard additions/ features to derivatives (as...

A one-touch option is a type of exotic option (and a barrier option) in which the holder receives a payout once...

A one-touch option is a type of exotic option (and a barrier option) in which the holder receives a payout once...

A short call synthetic straddle is a neutral option strategy (in essence, it is a short straddle strategy) that is...

A short straddle is a straddle that is constructed by selling two options: one put option and one call option....

The price of a Eurodollar futures contract (ED) is quoted as 100.00 minus the interest rate for the contract period....

A floorlet is a put option on some reference rate. It is an interim period floor in a multiple period...

The fair value of a stock index futures contract can be identified using arbitrage. At the beginning of the period...

A moving average floor is a floor which pays off the minimum of reference rate averages associated with several periods...

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