interest rate derivative
81Options strategies — can favor movements in the underlying that are bullish, bearish or neutral. In the case of neutral strategies, they can be further classified into those that are bullish on volatility and those that are bearish on volatility. The option positions …
82Married put — A married put, or protective put, is a portfolio strategy where an investor buys shares of a stock and, at the same time, enough put options to cover those shares. The term protective put highlights the use of this strategy as a hedge, or… …
83Mountain range (options) — Mountain ranges are exotic options originally marketed by Société Générale in 1998. The options combine the characteristics of basket options and range options by basing the value of the option on several underlying assets, and by setting a time… …
84Naked call — A naked call occurs when a speculator writes (sells) a call option on a security without ownership of that security. It is one of the riskiest options strategies because it carries unlimited risk as opposed to a naked put where the maximum loss… …
85Net volatility — refers to the volatility implied by the price of an option spread trade involving two or more options. Essentially, it is the volatility at which the theoretical value of the spread trade matches the price quoted in the market, or, in other words …
86Option naming convention — In financial markets, an option naming convention is a method of identifying which of many possible options is being quoted or traded. Contents 1 Standard convention 1.1 Expiration Month Codes 1.2 Strike Price Codes …
87Cliquet — A cliquet option or ratchet option is an exotic option consisting of a series of consecutive forward start options.[1] The first is active immediately. The second becomes active when the first expires, etc. Each option is struck at the money when …
88Compound option — or split fee option[1][2] is option on an option. The exercise payoff of a compound option involves the value of another option. A compound option then has two expiration dates and two strike prices. Usually, compounded options are used for… …
89Combinations (finance) — In finance a combination is an option trading strategy that involves taking a position in both calls and puts on the same underlying. Collar Fence Iron butterfly Iron condor Straddle Strangle Strap Strip Risk reversal References Hull, John C.,… …
90Commodore option — A Commodore option is an exotic option consisting of a number of digital barrier options that pay a coupon if a pre determined level of the Underlying or Basket of Underlyings is reached. Sometimes the digital barrier increases with the number of …
