## What is a Linear Payoff? What is a Positively or Negatively Convex Payoff?

Linear Payoffs
In Trading & Investing, a linear payoff refers to a financial instrument or investment strategy where the return

## What is the Now Phased-Out LIBOR? A Trip Down Memory Lane

LIBOR, which stands for the London Interbank Offered Rate, is a benchmark interest rate that indicates the average interest rate

## What is a Risk-Free Rate? How is that Related to a Risk-Free Security?

Having learned what risk-free securities are, we can now answer the above questions.
The risk-free rate is the theoretical rate

## What is a Risk-Free Security?

What is a risk-free security? This is a really philosophical question and the best way to answer this question is

## What is the MOVE (Merrill Lynch Option Volatility Estimate) Index?

The MOVE Index, short for "Merrill Lynch Option Volatility Estimate," is a measure of market expectations for future

## What is a Basis Trade?

A basis trade refers to a financial strategy in which an investor takes advantage of the price difference, or "

## What is a Cross Currency Swap?

A Cross Currency Swap (CCS) is a financial derivative in which two parties exchange cash flows in different currencies over

## What is an Interest Rate Swap?

An Interest Rate Swap (IRS) is a financial derivative contract between two parties that involves the exchange of interest rate

## What is Covered / Uncovered Interest Rate Parity? How is it Related to Forwards?

Interest Rate Parity (IRP) is one of the most important theories in finance. It links the interest rates, exchange rates,

## What is a Foreign Exchange (FX) Swap?

A Foreign Exchange (FX) swap is a financial derivative transaction that involves the simultaneous purchase and sale of identical amounts