| Dictionary, Encyclopedia and Thesaurus - The Free Dictionary 1,885,774,449 visitors served. |
|
Dictionary/ thesaurus | Medical dictionary | Legal dictionary | Financial dictionary | Acronyms | Idioms | Encyclopedia | Wikipedia encyclopedia | ? |
Compound Option |
0.01 sec. |
|
Compound option Option on an option.
Compound Option An option contract on an option contract. There are four basic types: a call on a call; a put on a call; a call on a put; and a put on a put. A compound option has two expiration dates and two strikes. There are also two premiums: one paid up front and the other paid if the underlying option is exercised. It is often used in markets where there are doubts on the risk for the underlying option, such as currency or fixed income markets. 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. |
|
| ? Mentioned in | ? References in periodicals archive | |
|---|---|---|
There is an auto compound option but you are only able to compound interest in the process of a deposit. Finally, we consider both investment opportunities as a compound option and calculate the value of the opportunity to complete the investment in First, (G([V. If the stock is considered as an option on the value of the firm, V, then the value of the call as a compound option can be expressed as a function of the firm's value. |
| Financial Dictionary |
| Free Tools: |
For surfers:
Free toolbar & extensions |
Word of the Day |
Help
For webmasters: Free content | Linking | Lookup box | Double-click lookup | Partner with us |
|---|