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Gut Spread

An option trading strategy which is established by selling/ buying in-the-money calls and puts. All the options involved have the…

American-Style Swaption

A swaption (swap option) that can be exercised anytime the holder finds favorable or suitable during the options life. Once…

Belgian Option

An option whose payoff is partially based on the movement of its underlying asset from initial cash price to the…

Time Discount Option

A contingent premium option in which premium is only paid at expiration date. The amount of the premium depends on…

Convexity Hedge

An hedged position in which the investor purchases more than one call option for each unit of the underlying he…

ITM Forward

It stands for in-the-money forward; a special case of an in-the-money option (ITM option) in which the spot price or...

ITMF

It stands for in-the-money forward; a special case of an in-the-money option (ITM option) in which the spot price or...

In-The-Money Forward

A special case of an in-the-money option (ITM option) in which the spot price or rate of the underlying is...

ITM Call Option

It stands for in-the-money call; a call option with a strike price being below the net amount of its underlying’s...

ITM Call

It stands for in-the-money call; a call option with a strike price being below the net amount of its underlying’s...