Automatic Exercise Capped Call Option

Finance
Deferred Cap Floater
July 24, 2021
Islamic Finance
Manqul
July 24, 2021

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.

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