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Employee Stock Option

An incentive plan which aims to motivate employees by conferring on the best performers the right to purchase the company’s…

Futures-Style Margining

In relation to a futures-style option (a futures contract on an option-like payoff), and similar to a standard futures contract,...

Ratio Bull Spread

An option trading strategy that is executed by selling a number of out of the money call options exceeding the…

Roll Up

An option-related strategy that is based on the replacement of a position by closing out one option at a given…

European Futures Call Option

A European futures option that grants the holder the right, without the obligation, to buy the underlying futures contract. The…

Eurobond Option

An option that allows the holder to take either a long and or short credit position so as to hedge…

ETF Option

An option to sell or buy an ETF before a certain date at a set price. Unlike other types of…

Derivative Instrument

A financial instrument that entails certain rights or obligations to its parties, and whose value is derived from an underlying...

Corridor Volatility Swap

A volatility swap with a corridor on its underlying asset/ price/ rate, etc. Corridor volatility swaps accumulate the volatility arising...

Fair Value of a Derivative

The fair value (FV) of a derivative depends on the value (fair value) of its underlying asset/ performance/ variable, etc....