Index Page numbers in bold refer to entries in the Glossary acceptors, bills of exchange 35 accrued coupons 43­4, 209 accrued interest 43­4, 277 acquisitions 4, 6­7, 8 all-or-nothing options see binary options American options 98, 114, 194, 195, 277 American Stock Exchange (ASE) 54 amortising 277 amortising bonds 41, 277 amortising swaps 78 Amsterdam Stock Exchange (ASE) 54 analytical (arbitrage-free) model 144 analytical pricing models 192­3, 196­204 AND operation see multiplication rule annual percentage rates (APR) 28­9, 206­7, 277 application developers 22 appreciation 277 APR see annual percentage rates arbitrage 277 arbitrage-free model 144, 152 arbitrage trades 255, 256, 269 arbitrageurs 57, 75­6 base currencies 88, 89­90, 278 basis 278 basis curves 179, 185­8 basis points 49, 278 basis risks 278 basis swaps 77, 83, 278 basket options 150, 278 bear markets 278 bear spreads 259, 263, 278 bearer bonds 40 bearer form 34, 35 bearer securities 278 bearish option strategies 255, 256, 257­63 benefits, options contracts 102 Bermudan options 148, 150, 278 betas 129­30, 220 better performance bond options 147, 278 BGM (Brace­Gaterek­Musiela) model 203­4 bid/offer spreads 279 bid prices 279 bilateral contracts, credit derivatives 62 bills of exchange 35, 279