Caput (redirected from caput mallei)

Caput

A type of exotic option that consists of a call option on a put option. Essentially it gives the holder the right to purchase another option. This type of option is also known as a "compound option".

Notes:

The holder of a caput option has the right to purchase a specific put option in the event that the price of the underlying asset declines. The disadvantage of a caput option is that it only trades over-the-counter, so it is not as easy to get into a position with caput options as with regular vanilla options.

See also: Call Option, Compound Option, Exotic Option, Over The Counter, Vanilla Option

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Caput

An exotic option. It represents a call option on a put option. That is, you purchase the option to buy a put option at a particular price on or before the expiration date.