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
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....