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Fence

The purchase of one option and the sale of a different-type option with a different strike price. In other words,…

Forward Reverse Option

A currency market tool, similar to an option, which is used principally to avail of a move in the underlying…

European Binary Option

A binary option that can be exercised only at the end of its life (i.e., on expiration date). That is,...

Deferred Floored Put

A type of barrier options (a floored put) which is associated with a strike price and a floor barrier below…

Diagonal Calendar Call Spread

A diagonal calendar spread (or a calendar diagonal spread) which constitutes an option trading strategy based on the selling of…

Fixed Strike

With respect to an option's strike (strike price), it refers to the situation where the implied volatility (volatility skew) remains...

Average Rate Floor

An interest rate floor (i.e., a contract on a minimum interest rate) whereby the seller pays the buyer, at periodic…

Breakforward Contract

A forward contract at a forward rate that allows the holder to break or unwind the contract with an opposite…

Average Price Put Option

An exotic put option where its payoff is determined by one of two values: zero (if the average market price…

Capped-Style Put

A capped-style option in which a cap interval is subtracted from its strike price in order to establish a modified…