The trading of options that is meant to “artificially” induce intensive trading using options volume trading and open interest, among…
An interest rate floor in which the successive floorlets cover decreasing notional principal amounts. In other words, the notional principal…
A forward contract at a forward rate that allows the holder to break or unwind the contract with an opposite…
A calendar spread which involves buying a call option with a set strike price and buying a longer-maturity call with…
A structured swap in which the swap counterparty agrees to adjust the notional principal amount in a fashion that matches…
A method that is used to calculate the value of an at-the-money call option (under the assumption of zero interest…
An option that can be exercised at any time before, and including, expiration date. This type of options provides investors…
An exotic put option where its payoff is determined by one of two values: zero (if the average market price…
It equals the number of shares in an option contract (typically 100 shares) multiplied by the exercise price in that…
A short sale which is carried out by the holder of a long position in the same stock being sold. The…