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[[File:Synthetic short forward.JPG|thumb|A synthetic [[short (finance)|short]] position in the [[underlying]], created using a short [[call optio [[File:Synthetic long forward.JPG|thumb|A synthetic [[long (finance)|long]] position in the [[underlying]], created using a long call and a sho ...

...iate coupon. It is called a [[Swap (finance)|swap]] because at [[Maturity (finance)|maturity]], one counterparty pays a fixed amount to the other in exchange {{Derivatives market}} ...

...l derivative]] that allows one to [[Speculation|speculate]] on or [[hedge (finance)|hedge]] [[risks]] associated with the observed average [[correlation]], of {{Derivatives market}} ...

It is called a [[Swap (finance)|swap]] because each year there is a swap of a fixed amount against a float {{Derivatives market}} ...

In [[finance]], a '''chooser option''' is a special type of [[option contract]]. It give * Yue-Kuen Kwok, [[Compound option]]s (from Derivatives Week and Encyclopedia of Financial Engineering and Risk Management) [http:/ ...

In [[mathematical finance]], the '''CEV''' or '''constant elasticity of [[variance]] model''' is a [[ *[[Volatility (finance)]] ...

...[[interest rate derivative]]s see [[Lattice model (finance)#Interest rate derivatives]]. ...ull | first = John C. | edition = 5th | title = Options, Futures and Other Derivatives | year = 2002 | publisher = [[Prentice Hall]] | isbn = 978-0-13-009056-0 | ...

...im Boyle|author2=Feidhlim Boyle |title=Derivatives: The Tools That Changed Finance |year=2001| publisher=Risk Publications |isbn=978-1899332885}}</ref>{{rp|18 ...the same level of complexity as those problems solved by [[Lattice model (finance)|tree approaches]].<ref name="JHull" /> ...

...odel [[illiquid securities]] and to value [[Derivative (finance)|financial derivatives]] on these. *[[Option (finance)#Model implementation|Option: Model implementation]] ...

...consists of a [[long (finance)|long]] [[call option|call]] and a [[short (finance)|short]] [[put option|put]] with one [[Expiration (options)|expiry date]], ...|delta]], [[gamma (finance)|gamma]], [[theta (finance)|theta]], or [[vega (finance)|vega]]. However, it is sensitive to [[interest rate]]s and [[dividend]]s.< ...

...inance]], Vol. 33, No. 1, (March 1978), pp. 177-186.</ref> is an [[option (finance)|option]] pricing formula applicable to an option to exchange one risky ass ..."The Value of an Option to Exchange One Asset for Another"], [[Journal of Finance]], Vol. 33, No. 1, (March 1978), pp. 177-186. ...

...derlying]] asset, as well as, if applicable, the difference in [[Leverage (finance)|leverage]] between the two sides. ...r the losses of the other side during periods of high market [[Volatility (finance)|volatility]], as well as insurance funds, pools of assets intended to prev ...

...atives using the Stochastic Grid Bundling Method"]. ''Applied Mathematical Finance''.</ref> in [[financial mathematics]], is an "adjustment" to a [[Derivative (finance)|derivative's]] price, as charged by a bank to a [[Counterparty#Financial s ...

*In finance, it refers to the exchange of the flow of payments from a given security (t ==Finance== ...

A '''compound option''' or '''split-fee option''' is an [[option (finance)|option]] on an option.<ref>[http://www.smartprofitsreport.com/glossary/cap {{Derivatives market}} ...

...on on realized volatility''' (or '''volatility option''') is a subclass of derivatives securities that the payoff function embedded with the notion of annualized ...ome extent, it is more convenient to use this notation to price volatility derivatives. However, the solution is only the approximation form of the discrete one s ...

| known_for = Contributions to probability theory and mathematical finance ...e is considered one of the pioneers on the French school of [[mathematical finance]] and trained many engineers and scientists in this field. ...

...n on realized variance''' (or '''variance option''') is a type of variance derivatives which is the derivative securities on which the payoff depends on the annua *[[Volatility (finance)]] ...

{{short description|Subfield of econophysics which applies quantum theory to finance}} ...physicists]] and [[Economics|economists]] in order to solve problems in [[finance]]. It is a branch of [[econophysics]]. Quantum computing is now being used ...

In [[mathematical finance]], '''convexity''' refers to non-linearities in a [[financial model]]. In o ...this is referred to as [[Gamma (finance)|Gamma]] (Γ), one of the [[Greeks (finance)|Greeks]]. In practice the most significant of these is [[bond convexity]], ...