Glossary
Abandonment option Option available to a firm to abandon a project during its life is known as abandonment option. The right to sell cash flows over the reminder of a project’s life cycle for a predetermined value is called option for abandonment.
AFS/HFT In interest rate derivative market, Government securities classified as available for sale (AFS) and held for trading (HFT) alone are allowed to be hedged against interest rate fluctuations.
American option An option contract where the option can be exercised at any time on or before the expiry date.
Asian options An option contract where the value of underlying asset is the average price computed over pre-determined option duration.
At-the-money contract A strike rate is at the at-the-money ...
Get Derivatives and Risk Management now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
