A capped call (or specifically an automatic cash-out option) whose payoff is a specific maximum level and which will automatically be exercised when its intrinsic value reaches or exceeds that level. The option holder will receive the maximum payout whenever the maximum level is touched or broken through.
This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.
Comments