A futures contract is marked to market on a daily basis. The value of a futures contract at the trade...

The call spread is an option combination that constitutes a modified version of a call option. By definition, it is...

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

Put overwriting is an option strategy that involves being simultaneously long stock and short puts on the same share of...

An interest rate swap is an agreement to exchange fixed-rate payments for floating-rate payments. Some swap structures also involve the...

A swap can be used for hedging a floating-rate liability and a fixed-rate liability. Economically, a swap produces the same...

A forward (or advance contract/ forward contract) is an over-the-counter (OTC) contract that obliges its holder to buy or sell...

An option contract whose strike price is better than the market price of its underlying asset is said to be...

A floor is a set of floorlets or interim period floors that are equivalent to put options on some reference...

Writing naked options is usually subject to initial margin requirements. The initial margin that is required by the CBOE for...