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The simultaneous purchase (or sale) of a futures or option contract for one date and the sale (or purchase) of a similar futures contract for a different date. See Spread
Call deposits
Deposits which can be called (or withdrawn) at the option of the lender (and in some cases the borrower) after a specified period. The period is short, usually one or two days, and interest is paid at prevailing short-term rates (call account).
Call option
An option that gives the seller the right, but not the obligation, to buy a specified quantity of the underlying asset at a fixed price, on or before a specified date. The buyer of a call option has the obligation (because they have bought the right) to make delivery of the underlying asset if the option is exercised by the seller.
Call spread
The purchase of a call option coupled with the sale of another call option at a different strike, expecting a limited rise or fall in the value of the underlying.
Callable bond
A bond that the issuer has the right to redeem prior to maturity by paying some specified call price.
Cap
Also ceiling. A package of interest rate options whereby, at each of a series of future fixing dates, if an agreed reference rate such as LIBOR is higher than the strike rate, the option buyer receives the difference between them, calculated on an agreed...
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