The basis can develop a widening trend when the spot price of an asset/ commodity increases faster than the futures...
A cash and carry transaction that is reversed. It involves the simultaneous sale of a cash market commodity/ instrument for...
The price at which a commodity or a financial instrument (a derivative) for immediate delivery is selling at a specific...
The sum of all expenses incurred on holding an asset, literally: storage, insurance and financing costs, subtracted from the income...
The sum of all expenses incurred on holding an asset, literally: storage, insurance and financing costs, subtracted from the income...
It is the difference between the spot price of an asset and the futures price (of the asset underlying the...
A commodity swap in which two counterparties exchange cash flows based on two prices: the sport price and the future...
With respect to an option's strike (strike price), it refers to the situation where the implied volatility (volatility skew) remains...
With respect to an option's strike (strike price), it refers to the situation where the implied volatility (volatility skew) remains...
A situation where the implied volatility (volatility skew) remains unchanged (i.e., it sticks) for any given delta or moneyness. Options...