Tag: derivatives

Call Risk

What is 'Call Risk' The risk, faced by a holder of a callable bond, that a bond issuer will take advantage of...

Canadian Depository For Securities Limited (CDS)

What is 'Canadian Depository For Securities Limited - CDS' Canada's national securities depository, clearing and settlement hub. The Canadian Depository for Securities...

Call Option

DefinitionA call option, often simply labeled a "call", is a financial contract between two parties, the buyer and the seller of this type of...

Partial Release

What is 'Partial Release' A mortgage provision allowing some of the pledged collateral to be released from the mortgage contract if certain...

Quantity-Adjusting Option (Quanto Option)

What is 'Quantity-Adjusting Option - Quanto Option' A cash-settled, cross-currency derivative in which the underlying asset is denominated in a currency other...

Quanto Swap

What is 'Quanto Swap' A swap with varying combinations of interest rate, currency and equity swap features, where payments are based on...

Vanilla Option

What is a 'Vanilla Option' A vanilla option is a financial instrument that gives the holder the right, but not the obligation,...

Variable Prepaid Forward Contracts

What is 'Variable Prepaid Forward Contracts' An agreement to give a predetermined number of shares to a brokerage firm, with the stipulation...

Vega

What is 'Vega' Vega is the measurement of an option's sensitivity to changes in the volatility of the underlying asset. Vega represents...
Variance Swap

Variance Swap

Definition A variance swap is an over-the-counter financial derivative that allows one to speculate on or hedge risks associated with the magnitude of movement, i.e....

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