Glossary
A
Accrued interest: The prorated portion of a bond's coupon since the previous coupon payment.
American options: Options that can be exercised anytime during the life of the option.
Arbitrage: Making profits with zero net investment and taking no risk when there is a mispricing of related securities in the market.
Arbitrager: A trader who enters into arbitrage trades.
Asian options: Options in which pay-off is based on the average price of the underlying asset over an agreed period of time and the exercise price.
At-the-money option: An option where the underlying asset price is close to its strike price.
B
Backwardation: Occurs when the futures prices are falling with time to expiration.
Badla: A system of forward trading in Indian ...
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