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Home Categories Advanced Concepts A Convertible Asset Substitution Option Transaction, or ASCOT, is a way of separating the fixed income and equity components from a convertible bond. A bearish put spread is an option strategy implemented by a bearish investor who wants to maximize profits with minimal losses. A bear spread is a bear option strategy used when an investor expects a moderate decline in the price of the underlying asset. The Bermuda option can be exercised early, but only on certain dates before its expiration date. Bull Spread Put is an option strategy that is used when an investor expects a moderate increase in the price of the underlying asset. A collar is an options strategy that involves buying a put option down and selling a put option up, which is used to protect against large losses but also cap large profits up. Countertrade provides a mechanism for countries with limited access to liquidity to exchange goods and services with other countries. The condition of covered parity of interest rates suggests that the relationship between interest rates and the spot and forward values of the currencies of the two countries are in balance. A currency swap involves the exchange of interest - and sometimes principal - in one currency for the same thing in another currency. The Credit Default Swap Index (CDX) is a benchmark index that tracks a basket of single issuer credit default swaps in the US and emerging markets.