Archive for the 'derivatives, options, futures' Category

Call Writing

Saturday, January 9th, 2010

Call writing is known to be a bearish equivalent of put writing.  With Call writing, the investor expects the price of the underlying interest to remain at or below the strike price.  The investor is therefore neutral to bearish.

Plain Vanilla Swap

Wednesday, September 16th, 2009

Hard to understand what a plain vanilla swap is? Well, here is a cartoon. A wap is a particular type of Over The Counter (OTC) forward contracts. In the most basic type of swap (referred to as a plain vanilla swap), one party agrees to pay to the other party cash flows equal to interest [...]