A binary option is an option with a predetermined payoff, triggered only if the underlying price meets the strike price. These are also commonly referred to as “all or nothing” or “digital options”. Binary call pays a fixed amount if the underlying price ends up above the strike price, while binary put pays off a fixed amount if the underly…[Read more]

A cliquet option, also called ratchet option, consists of a series of forward start options, each struck at the money on the date it becomes active. Typically, each option begins on the date corresponding to the expiry of the previous option. The cliquet is a series of at-the-money options, with periodic settlement, resetting the strike value at…[Read more]

Barrier options are set up conditionally, so that within the life of the option, a barrier may or may not be reached. The barrier option is dependent on an “extreme” price, either high or low, attained by the underlying. If a barrier is reached, or touched, the constraints are triggered.

A lookback option gives the option holder the right but not the obligation to buy the underlying asset at the lowest price. It pays a single call-option-style payoff based on the performance of the underlying asset’s final price relative to its initial price, where both the initial and final prices are computed using a lookback formula.

A variance swap is an instrument which allows investors to trade future realized (historical) volatility against current implied volatility. The Variance Swap pays the difference between observed variance and a strike variance, possibly subject to a cap and a floor. The observed variance is computed from the stock price returns over a series of…[Read more]

An equity warrant is an option on the equity of a firm issued by the same firm, which gives the holder the right to purchase shares at a fixed price from the firm at a future date. When a warrant is exercised, the firm typically issues new shares at the exercise price to fill the order. The resulting increase in shares outstanding dilutes the share value.

An equity swap is an OTC contract between two parties to exchange a set of cash flows in the future. Normally one party pays the return based on capital gains and dividends realized on an equity security and the other party pays the return based on a floating interest rate plus a spread.

The mentorship programme in the school of education of a South African university shows what is possible in peer mentor leadership development. Through the analysis of first-year student mentees’ perceptions, experiences, and assessment of their peer mentors’ roles, and accounts of the mentors’ review of their role in the mentorship progr…[Read more]

Equity options, which are the most common type of equity derivatives, give an investor the right but not the obligation to buy a call or sell a put at a set strike price prior to the contract’s expiry date. Equity options are derivatives that means their value is derived from the value of an underlying equity. Investors and traders can use e…[Read more]

An Equity Forward contract is an agreement between two counterparties to buy a specific number of equity stocks, stock index or basket at a given price (called strike price) at a given date. For any forward contract no cash changes hands until the maturity of the contract. Equity forward contracts are cash settled in most cases. At maturity, the…[Read more]

Convertible bonds can be thought of as normal corporate bonds with embedded options, which enable the holder to exchange the bond asset for the issuer’s stock. Having properties of both stocks and bonds, convertibles can be an attractive choice for investors and have tended to have lower risk.

A basket option can be used to hedge the risk exposure to or speculate the market move on the underlying stock basket. Because it involves just one transaction, a basket option often costs less than multiple single options. The most important feature of a basket option is its ability to efficiently hedge risk on multiple assets at the same time.…[Read more]

Privy councils are among the most traditional, yet least conspicuous forms of collective decision-making in modern states. However, using the example of East Asia, this chapter shows that, far from being a moribund relic of the pre-constitutional past, advisory councils to the head of state were a highly productive global element of…[Read more]

The article examines the relationship between the late Qing constitutional movement of 1905–1911 and the vast borderland regions of the Qing Empire–that is, Mongolia, Tibet, and Xinjiang. It traces how intellectuals and officials concerned with devising constitutional policies foresaw the integration of these regions into the nascent par…[Read more]

An Asian option or average option is a special type of option contract where the payoff depends on the average price of the underlying asset over a certain period of time. The payoff is different from the case of a European option or American option, where the payoff of the option contract depends on the price of the underlying stock at exercise date.

An American option give an investor the right but not the obligation to buy a call or sell a put at a set strike price at any time prior to the contract’s expiry date. Since investors have the freedom to exercise their American options at any point during the life of the contract, they are more valuable than European options, which can only be e…[Read more]

This chapter presents the results of the evaluation of public policy actions for women’s political participation and equality in the department of Santander (Colombia). The methodology used in this research can be used by anyone who wants to evaluate the coherence of women’s political participation policies from a public policy analysis approach.

An implied volatility is the volatility implied by the market price of an option based on the Black-Scholes option pricing model. In cap market, a cap/floor is quoted by implied volatilities but not prices. An interest rate cap volatility surface is a three-dimensional plot of the implied volatility of a cap as a function of strike and maturity.

An implied volatility is the volatility implied by the market price of an option based on the Black-Scholes option pricing model. A volatility surface is derived from quoted volatilities that provides a way to interpolate an implied volatility at any strike and maturity.