For options and similar types of derivatives, the skew is the slope of the implied volatility curve for a given...
An interest rate swap in which the floating rate is set in arrears. This means, the floating rate is determined…
Adding up a series of numbers (two at least) and dividing the sum by their count. For example, to find…
An action that is taken by an investor or trader whereby he/ she chooses not to exercise or offset a…
A trading tactic in which an asset is bought at a low price on one market and then is immediately…
An interest rate floor (i.e., a contract on a minimum interest rate) whereby the seller pays the buyer, at periodic…
An average rate option which gives the holder the right, but not the obligation, to buy the underlying asset, with…
An average rate option which gives the holder the right, but not the obligation, to sell the underlying asset, with…
It reflects the magnitude of the instantaneous fluctuation of a dynamic process, e.g., the log of an underlying asset price/...
A measure of volatility (at-the-money volatility, ATM volatility) that is calculated by averaging the implied volatilities from a put and...
