摘要: The process of consolidating swap agreements between two parties into a single agreement. As a result, instead of each swap agreement leading to a stream of individual payments by either party, all of[阅读全文:]
摘要: A type of option in which the payoff is structured to be either a fixed amount of compensation if the option expires in the money, or nothing at all if the option expires out of the money.
Thes[阅读全文:]
摘要: An options valuation method developed by Cox, et al, in 1979. The binomial option pricing model uses an iterative procedure, allowing for the specification of nodes, or points in time, during the tim[阅读全文:]
摘要: A model of price variation over time of financial instruments such as stocks that can, among other things, be used to determine the price of a European call option. The model assumes that the price of[阅读全文:]
摘要: A variation of the Black-Scholes model that allows for the valuation of options on futures contracts.
In 1976, Fisher Black, one of the developers of the Black-Scholes model (introduced [阅读全文:]
摘要: The month during which there is the greatest trading activity in derivatives trading. These derivatives can be options, futures, or other type of derivative-based instruments. The occurrence of a blue[阅读全文:]
摘要: A type of options strategy used when a decline in the price of the underlying asset is expected. It is achieved by selling call options at a specific strike price while also buying the same number of [阅读全文:]
摘要: A type of option where the payoff is either zero or the amount by which the strike price exceeds the average price of the asset.
The average price of these exotic options is derived with a timef[阅读全文:]
摘要:
An option used to hedge against fluctuations in exchange rates by averaging the spot rates over the life of the option and comparing that to the strike price of the option. Average rate options are[阅读全文:]