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ITM Swaption

It stands for in-the-money swaption; a swaption (swap option) in which the strike price of the option is less than the forward rate (in...

Conditional Call Option

An option (here a call option) that allows the holder of a callable bond (which is also a convertible bond)...

Lookback Currency Option

A currency option which is enhanced by a lookback feature (lookback option), granting the holder the right to trade a specific amount...

Put Option

An option contract that gives its holder (the buyer) the right, but doesn’t oblige him/ her/ it, to sell a certain quantity...

Put

An option contract that gives its holder (the buyer) the right, but doesn’t oblige him/ her/ it, to sell a certain quantity...

Contingent Premium Option

An option contract for which no premium is paid upfront by the buyer (long). However, a pre-specified premium should be paid if the option...

Capped Option

An option with an cap placed on payout or price, and which is automatically exercised when the underlying closes at or above (for a call)...

Interest Rate Caption

An option on a cap. In other words, a caption is an option to buy or sell an interest rate cap whereby the holder has...

Caption

An option on a cap. In other words, a caption is an option to buy or sell an interest rate cap whereby the holder has...

Low Exercise Price Option

A call option with an exercise price initially set deep in-the-money. Since it is highly likely that the option will...