Option swaps are more commonly known by the acronym “swaption”. The concept is relatively simple, in that by participating in a swaption, a trader has acquired the option to enter an interest rate swap. They key factor is that the trader is not obligated to enter into the swap, but he does have the right to do so should he so desire.
Tracking Error – Tracking Error is a term that refers to the difference between the value of an index fund at a certain point in time and the actual total value of the index fund’s component shares. Triple Witching Days – This frightening term refers to an event that occurs four times a year, on […]