Moneyness is the relationship between the strike price of an option and the underlying asset’s price. The term is used to describe whether an option is in the money (ITM), at the money (ATM), or out of the money (OTM). ITM options have strike prices below the underlying asset’s price for calls, and above the … Read more

What Is a Foreign Currency Swap?

A foreign currency swap is an agreement between two parties to exchange interest payments and principal in different currencies. The exchange rate between the two currencies is agreed upon at the outset of the contract, and the interest payments are calculated based on this rate. The two parties involved in a foreign currency swap typically … Read more