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Short Synthetic Futures

A synthetic futures which consists of a short call and a long put: Short synthetic futures position = short call…

Mega Premium Option

An option that pays the seller an enlarged or enhanced premium on the condition that the seller refunds the premium…

IIC

An abbreviation for inflation-indexed cap; an inflation derivative that pays out if inflation (as measured by percentage increase in the…

Roll Forward

An option-related strategy that is based on the replacement of a position by closing out one option with a near-month…

Call Option Spread

An option strategy whereby the same number of call options are simultaneously bought and sold at certain strike prices to…

Convexity Hedge

An hedged position in which the investor purchases more than one call option for each unit of the underlying he…

Tandem Options 

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

100 Strike

The strike price of an option which is equal to the spot price of its underlying. The spot price can...

Pinning the Strike

A situation that occurs when the underlying of an option settles near or at its strike price (exercise price) at...

Ladder Rung

In connection with a ladder option or similar-type option (e.g., a shout option), a ladder rung is a trigger strike...