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Ladder Option

In principle, a ladder option (ratchet option) is an option (or a warrant, index-linked note) that subjects its minimum payoff...

Ratchet Option

In principle, a ratchet option is an option (or a warrant, index-linked note) that subjects its minimum payoff to an...

Convertible Asset Swap

An asset swap whose underlying is a convertible security. In terms of composition, it is a combination of an asset…

Covered Option Strategy

An synthetic option strategy that involves a position in an option combined with a position in the underlying. The strategy...

Barrier Event

An event to which barrier options (or other derivatives such as warrants, swaps, etc.) are subject for payoff determination. It...

Tandem Options 

A sequential series of same-type options that is basically designed to cover non-overlapping time periods, for one purpose or another.…

Tax Straddle 

A tactic that is used in futures and options trading to create tax benefits. By definition, it is a combination...

Take-and-Pay Option 

An option that is established by trading the underlying. An example is an energy option in which the rate of…

Barrier Discontinuity

A condition occurring in barrier options where their being knocked-in (activated) or knocked-out (deactivated) depends on a specific underlying price/...

Lookforward Option

An option which allows the holder to have access in the future to the difference between the spot strike at...