Types of Derivatives Instruments – All You Need to Know
A derivative is a financial instrument that derives its value from an underlying asset. The underlying security could be shares, bonds, currencies, commodities, and… Read Article
Swaps
Types of Swaps
Swaps, as the word suggests, means the exchange. But, in the financial world, especially the derivatives market, a swap means the exchange of the… 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
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
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
Payer Swaption – Meaning, Importance, and Example
A Payer Swaption or Put Swaption gives the buyer a right but not an obligation to agree on an Interest Rate Swap. Here the… Read Article
Swaption – Meaning, Features, Benefits, Types and More
As the word suggests, Swaption is a combination of the words Swap and Option. It is an option to avail of a swap, such… Read Article
Economic Exposure
Meaning of Economic ExposureEconomic exposure, also known as operating exposure (a type of foreign exchange exposure), refers to an effect caused on a company’s… Read Article
Translation Exposure
Meaning of Translation ExposureTranslation exposure is a type of foreign exchange (currency) risk of change in the value of a company’s assets, equities, income,… Read Article
Foreign Exchange
Meaning of Foreign ExchangeForeign exchange, also termed Forex, refers to converting one country’s currency into another country’s currency. A single country’s currency is valued… Read Article