An OTC-traded financial instrument (option) that allows the holder to take views on the volatility of a market. In its simplest form,...

A 1st order Greek is a first-order derivative of the option value with respect to some variable such as underlying’s price, volatility,...

A first-order Greek is a first-order derivative of the option value with respect to some variable such as underlying’s price, volatility, interest rate,...

A straddle whose strike is equal to (or closest to) the price of its underlying asset. It is a combination of a call option and a option...

A covariance forward contract of two underlying prices/rates. This swap pays the excess of the realized covariance between two assets (such as currencies) over a constant...

A tool that measures the calculated or implied mid-rate volatility for an ATM option for a specific expiration date. In...

A market tool that measures investors' feelings about stock option risk levels in a particular stock index (the S&P 100)....

The band or range in which volatility changes upwardly and downwardly, but not exceeding its upper and lower boundaries. In simple terms,...