Filter by Categories
Accounting
Banking

Derivatives




Step Payment Option


A standard option where part or all of the premium is deferred, depending on the spot price reaching preset triggers during the life of the option. If the spot price reaches or breaks trough a particular trigger level before expiration, the buyer of the option (the long) will have to pay the specified premium amount as corresponding to that trigger level.

This option is also known as a step-premium option.



ABC
Derivatives have increasingly become very important tools in finance over the last three decades. Many different types of derivatives are now traded actively on ...
Watch on Youtube
Remember to read our privacy policy before submission of your comments or any suggestions. Please keep comments relevant, respectful, and as much concise as possible. By commenting you are required to follow our community guidelines.

Comments


    Leave Your Comment

    Your email address will not be published.*