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| Warrant H
| A
| A stock index in which each stock influences the index in proportion to its price per share.
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| Underlying asset
| B
| An advantageous arrangement between two parties (counterparties), in which one party pays a fixed rate, while the other pays a floating rate.
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| Swap E
| C
| The total cost of an option.
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| Strike price P
| D
| A futures contract on a stock or financial index.
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| Stock option
| E
| An exchange of one security for another to change the maturity (bonds), quality of issues (stocks or bonds), or because investment objectives have changed.
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| Russell 2500 index N
| F
| An interest rate at which banks can borrow funds, in marketable size, from other banks in the London interbank market.
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| Price-weighted index
| G
| An arrangement between two parties in which both parties pay a fixed interest rate that they could not otherwise obtain outside of a swap arrangement.
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| Premium
| H
| A derivative security that gives the holder the right to purchase securities (usually equity) from the issuer at a specific price within a certain time frame.
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| LIBOR
| I
| A contractual agreement, generally made on the trading floor of a futures exchange, to buy or sell a particular commodity or financial instrument at a pre-determined price in the future.
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| Interest rate swap
| J
| In the U.K., it is known as a "share option".
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| Index futures contract D
| K
| The day on which an options or futures contract is no longer valid and, therefore, ceases to exist.
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| Hedge O
| L
| A derivative security that gives the holder the right to purchase securities (usually equity) from the issuer at a specific price within a certain time frame.
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| Futures contract I
| M
| An agreement between two parties (known as counterparties) where one stream of future interest payments is exchanged for another based on a specified principal amount.
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| Fixed-for-floating swap
| N
| A broad index featuring 2,500 stocks that cover the small and mid cap market capitalizations.
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| Fixed-for fixed swap
| O
| Making an investment to reduce the risk of adverse price movements in an asset.
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| Financial engineering Q
| P
| The price at which a specific derivative contract can be exercised.
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| Expiration date K
| Q
| A multidisciplinary field relating to the creation of new financial instruments and strategies, typically exotic options and specialized interest rate derivatives.
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