Jj kenny index
JJ Kenny Index is now called the S&P Weekly High Grade Index, established in 1982 at the inception of the variable rate demand bond market, the JJ Kenny index represents the current rate that 7 day variable rate demand bonds will clear the market at par. The index is comprised of over 250 high grade short term variable rate municipal bonds.
JOINT OPTION
An option on an underlying, often a stock index, denominated in a second currency. Unlike a guaranteed exchange rate option, in which exchange rates are fixed, the purchaser of a joint call option benefits from upside in the currency in which the asset is originally denominated, for example, S&P 500 call option struck in euro. In this case, at the inception, strike is specified in euro. At the maturity, S&P 500 level is observed and is multiplied by then current euro/US dollar rate. This converted value of S&P 500 is compared with the strike to determine the payoff in euro.
See also
correlation,
exchange option,
quanto product
JUMP DIFFUSION
One of the key assumptions of the Black-Scholes model is that the asset price follows geometric Brownian motion with constant volatility and interest rates. In a jump diffusion model, it is assumed that in addition to this regular diffusion, there are jumps in the market. This type of model is sometimes used for modeling equities and emerging market currencies.