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Basket Option

   Also found in: Wikipedia 0.01 sec.
Basket Option
An option contract in which the underlying asset consists of several different assets. For example, a basket call may give one the right, but not the obligation, to buy more than one currency at the strike price (which is denominated in a currency other than any in the underlying). A basket option provides a way for a corporation to hedge against several different risks at the same time and to do so more cheaply. However, a rainbow option is exposed to the risk that only some, rather than all, of the underlying assets will move in the direction benefiting the holder. A basket option is also called a rainbow option.


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Saudi ArabiaAEs central bank governor on Thursday said the basket option for the planned single currency was one option though not the perfect solution.
Aa Saudi Arabia's central bank governor on Thursday said the basket option for the planned single currency was not the perfect solution.
There are many great gift basket options available today that you can choose from.
 
 
 
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