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Nonlinear Derivative

A derivative or fixed-income security which features high convexity, i.e., its sensitivity changes with the passage of time or with...

Linear Derivative

An option-related instrument or fixed-income security which features low or no convexity, i.e., its sensitivity changes with the passage of...

FRA

It stands for forward rate agreement which is an over-the-counter agreement to apply a certain interest rate to either lending...