CAC-40 index

The CAC-40 Index is the benchmark tracking index for the Paris Bourse.

Calendar spread

A calendar spread is a widely-used strategy that involves simultaneously buying one option and selling another...

Call option

The owner of a call option has the right to purchase and the writer has the obligation to sell...

Call spread

A call spread is a vanilla strategy. It is the simultaneous purchase and sale of a call (long call and short call), with different strike prices but the same expiry date.

Callable capped floater swap

A callable cap floater swap is a cap floater swap where the payer of the capped leg has the right but not the obligation to terminate the deal on any coupon date after the predefined lockout date.

Callable inverse floater note

A Callable Inverse Floater Note is a structured product where the coupon of the bond is based on a formula which produces coupons which increase as the defined floating reference rate decreases.

Callable inverse floater swap

A callable inverse floater swap is an inverse floater swap where the payer of the structured leg has the right but not the obligation to terminate the deal on any coupon date after the predefined lockout date.

Callable range accrual note

Callable Range Accrual Note is a structured product where the coupon of the bond is conditional on some event happening.

Callable range accrual swap

A callable range accrual swap is a range accrual swap where one of the parties has the right but not the obligation to terminate the range accrual swap...

Callable (Bermuda) swap

Callable zero coupon swap

A Callable Zero Coupon Swap is a Zero Coupon Swap where the payer of the zero coupon rate leg has the right...

Cancelable swap

A cancelable swap is a vanilla swap where the one of the counterparties has the right but not the obligation to terminate the swap...

Cap

A cap is synonymous with a call option, ensuring its buyer protection against a rise in the underlying above the strike.

Cap-floor strategies

You can select one of the following predefined strategies, each of which uses caps and floors in various combinations...

Cash flow for EQ

An EQ cash flow instrument lets you enter into a series of predefined cash flows on predefined dates...

Cash settlement

If a contract is cash settled, on the delivery date instead of actual physical delivery of the underlying asset...

CBOE

Chicago Board Options Exchange (CBOE) is an options exchange in the United States.

CBOT

The Chicago Board of Trade...

CDO

See Collateralized debt obligation.

CDS

See Credit default swap.

CDS index

A credit default swap index is a credit derivative used to hedge credit risk...

CFTC

CFTC is the Commodity Futures Trading Commission.

Choice price

The price of an option is usually presented as a bid/ask price...

Chooser option

The central feature of a chooser option is that although you have to decide its strike and expiry date in advance...

Clearing

A term used on futures and options exchanges...

Cliquet options

See Ratchet options

CM swap

In a CM swap, the two parties swap a fixed rate for a floating rate...

CME

The Chicago Mercantile Exchange (CME) is a futures exchange in the United States.

CMS cap

A CMS cap is similar to a regular cap in that it protects its buyer from a rise in a floating rate...

CMS floor

A CMS floor is similar to a regular floor in that it protects its buyer from a drop in a floating interest rate...

CMS range accrual swap

A CMS range accrual swap (cmsra) is similar to a range accrual swap (ras)...

CMS spread option

A CMS spread option is similar to a regular cap/floor option...

CMS spread swap

A CMS spread swap is an interest rate swap where one leg is usually set by reference to a floating index...

CMS swap

A CMS (constant maturity swap) is an interest rate swap where at least one of the legs is a floating rate...

CMS total return index swap

The CMS total return index swap is an interest rate swap where one leg is based on the Deutsche Bank Euro CMS Return Index (CMSRI)...

Collar

In the commodity and equity markets, a risk reversal is known as a collar.

Collateralized debt obligation

A synthetic CDO (collateralized debt obligation) is a credit derivative instrument...

Commodity swap

A commodity swap is a contract where the buyer is obliged to buy (sell) an asset at a predetermined fixed rate and sell (buy) the same asset...

Compound option

A compound option is an option on an option.

Contango

The usual market condition in the equity and commodity futures market...

Contingent premium

In a contract with a contingent premium the premium is deferred to expiration...

Convexity

Convexity generally describes a second order risk sensitivity of a financial derivative.

Correlation

Correlation is a statistical measure of how much the movement of two separate currency pairs are related.

Covered call

A covered call involves selling a call on an underlying that you already own.

Covered put

A covered put involves selling a put on an underlying that you already own.

Crack option

A crack option (also known as a spread option) gives the holder of the option the right to exchange a base asset...

Credit default swap - CDS

A credit default swap (CDS) is a form of insurance against possible default of payment on an underlying debt...

Credit derivative indexes

Credit derivative indices are indices designed to track the performance of various segments of credit derivatives.

Credit derivatives

A credit derivative is an OTC derivative designed to transfer credit risk from one party to another...

Credit linked notes

A credit linked note is a debt instrument with an embedded credit derivative.

Credit risk

Credit risk is the risk of loss due to a counterparty defaulting on a contract.

Cross asset barrier

A cross asset barrier is a regular barrier option where the trigger is based on a different underlying than the option itself.

Cross currency swap

A cross currency swap is similar to a vanilla swap, while giving each counterparty access to a different foreign currency.

Currency pairs

A currency pair depicts the price of one currency in terms of another currency...