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Balloon Option |
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Balloon Option An option contract in which the strike price increases by a certain ratio after the price of the underlying asset reaches a stated threshold. For example, if the underlying asset goes above $50 per unit, the strike price may increase by $3 for every extra dollar that the underlying reaches. This type of option is most common when the underlying asset is a currency. How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
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