Forward Rate Agreement – Meaning, Features, Example, and More
Forward Rate Agreement or FRA’s are very similar to the forward contracts. In FRA, one user agrees to lend or borrow to another a… Read Article
Derivative Instruments
Commodity Fund
Commodity funds are the exchange-traded funds that invest in commodities like rice, corn, or metals like gold. Investing in commodities is just another way… Read Article
Collateralized Debt Obligation (CDO) – Meaning, Benefits, and More
Collateralized Debt Obligation (CDO) is a type of credit derivative and investment product. We can also call it a collection of pooled assets that… Read Article
Lookback Option – Meaning, How it Works, Types and More
Lookback Option allows an investor to consider the price history when deciding the time to exercise the option. One major benefit of this option… Read Article
In the Money and Out of the Money – All You Need to Know
In the Money (or ITM) and Out of the Money (or OTM) are the concepts and the terms used in options trading. Such trading… Read Article
Payer vs Receiver vs Bermudan vs European vs American Swaption
A swaption is a combination of two words – swap and option. So, it is an option that allows the holder the right, but… Read Article
Derivatives Market – Types, Features, Participants and More
A Derivatives Market is a financial marketplace where financial instruments, such as options and futures, and other derivative instruments are traded. Different types of… Read Article
Callable Preferred Stock
What is a Callable Preferred Stock?Callable preferred stock is a type of preference share that gives the issuer or the company the right to… Read Article
Bermudan Swaption – Meaning, Pricing, and More
Bermudan Swaption is one of three types of swaption on the basis of execution. The other two are – European swaption and American swaption.… Read Article
Cornering the Market
What is Cornering the Market?In the financial context, cornering the market refers to the acquisition of shares or particular security in large quantum. The… Read Article
Receiver Swaption – Meaning, Pricing, Suitable For and More
Receiver Swaption or the Call Swaption gives the buyer a right but not an obligation to agree on an Interest Rate Swap Agreement. In… Read Article