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   Yield Differential Warrant
   















 

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Yield Differential Warrant

Contract in which the payoff, if any, is a function of a yield differential in two markets, such as a short-term and a long-term rate in a particular country or a rate of the same maturity in two countries. Also called Yield Spread Option or Warrant. See, for example, BOATs, Diff or Difference Option (2).

Glossary * Y