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Cap Premium

The price that is charged by the seller of a cap in return for giving the cap buyer the right...

Interest Rate Cap Premium

The price that is charged by a interest rate cap seller in return for giving the cap buyer the right...

Deferred Premium Option

An option in which payment of the premium is deferred until the its expiration date. This option is a type...

Premium

In the realm of options, it refers to the amount of money an option buyer pays to an option writer...

Boston Option

An option in which payment of the premium is deferred until the expiration of the option. A Boston option is...

Synthetic Credit Risk Premium

The price of credit risk quoted in a credit default swap. This price is derived indirectly from the credit risk...

Alpha

A measure of excess return which is typically defined as the net risk-adjusted premium derived from an investment position or...

Zero-Cost Hedge

An option trading which is arranged such that the premium received from an option sold (short option) compensates for the...

Cash Market Premium

The price of credit risk as traded in the cash market using asset swaps. In other words, it is the...

FV Premium

It stands for fair value premium; according to the Black-Scholes model, it refers to the premium which makes both the...