National Currency

• The floating exchange rate is determined by supply and demand on the open market.

• A horizontal spread is a simultaneous long and short position in derivatives for the same underlying asset and strike price, but with different expiration dates.

• An interest rate derivative is a financial contract whose value is based on some underlying interest rate or interest-bearing asset.

• LIBID - London Interbank Offered Rate, the “offer” rate at which banks are willing to borrow deposits in Eurocurrency.

• Pegging is a way to control the exchange rate of the national currency by linking it to the currency of another country.

• Tick size - the minimum change in the price increment of a trading instrument. – Tick sizes used to be in fractions (e.g. 1/16th of $1), but today they are mostly decimal based and expressed in cents.

• The Witching Hour is the last hour of trading before options or other derivatives contracts expire.

• Alan Greenspan is an American economist and former chairman of the Federal Reserve.

• An American option is a type of option contract that allows holders to exercise their rights at any time up to and including the expiration date.

• An application-specific integrated circuit (ASIC) miner is a computerized device or hardware that uses an ASIC solely to mine bitcoin or another cryptocurrency.

A cession is a transfer of rights or property from one person to another.#

• In the money (ATM) are calls and puts where the exercise price is equal to or very close to the current market price of the underlying security.

• An atomic swap is a cryptocurrency exchange between two parties who want to exchange tokens from different blockchains.

• Austerity refers to a strict economic policy that the government introduces to control the growing public debt, driven by increased thrift.

• Backwardation is when the current price of the underlying asset is higher than the prices traded in the futures market.

• Barrier options are a type of exotic option in which the payoff depends on whether the option reaches or exceeds a predetermined barrier price.

• Basel I, the first of the three Basel Accords, created a set of rules that banks must follow to mitigate risk.

• Bear call spreads are formed by buying two call options, one long and one short, with different strike prices but the same expiration date.

• Ben Bernanke - former chairman of the Federal Reserve from 2006 to 2014.

• Binary options depend on the outcome of the offer “yes or no”.

• The compound rate is the interest rate charged on a loan, which is a combination of the previous rate and the new rate.

• Boundary conditions were used to establish the minimum and maximum possible values of call and put options prior to the introduction of binomial tree and Black-Scholes pricing models.

• A box spread is an option arbitrage strategy that combines buying a bullish call spread with a corresponding bearish put spread.

• A bull call spread is an option strategy used when a trader bets that a stock will have a limited increase in value.

• A bull spread is an optimistic option strategy used when an investor expects a moderate increase in the price of the underlying asset.