Conditional Variance Swap
A conditional variance swap is a type of swap derivative product that allows investors to take exposure to volatility in the price of an underlying security only while the underlying security is within a pre-specified price range. This ability could be useful for hedging complex volatility exposures, making a bet on the volatility levels contained in the skew of the underlying security's price, or buying/selling variance at more attractive levels given a view on the underlying security.
Read more about Conditional Variance Swap: History
Famous quotes containing the words conditional, variance and/or swap:
“Computer mediation seems to bathe action in a more conditional light: perhaps it happened; perhaps it didn’t. Without the layered richness of direct sensory engagement, the symbolic medium seems thin, flat, and fragile.”
—Shoshana Zuboff (b. 1951)
“There is an untroubled harmony in everything, a full consonance in nature; only in our illusory freedom do we feel at variance with it.”
—Fyodor Tyutchev (1803–1873)
“If we should swap a good library for a second-rate stump speech and not ask for boot, it would be thoroughly in tune with our hearts. For deep within each of us lies politics. It is our football, baseball, and tennis rolled into one. We enjoy it; we will hitch up and drive for miles in order to hear and applaud the vitriolic phrases of a candidate we have already reckoned we’ll vote against.”
—Federal Writers’ Project Of The Wor, U.S. public relief program (1935-1943)