A type of mountain range options (on the market since 1990s) that offers the option holder a payoff provided that none of the underlying stocks within a basket falls below a predetermined level of the initial value during a specific period of time. Annapurna options provide two potential sources of payoff: a fixed coupon-like payment and equity gains from a bunch (basket) of underlying securities (in the form of a participation rate). The first leg of the payoff materializes when the worst-faring stock of the equity portion drops below a specified threshold (low point), ending thereby the option life. The longer the time it takes to hit that threshold, the larger the amount of the coupon payment. In turn, the second leg rises in value if it takes longer to hit the payout point.

Annapurna is a mountain range in Nepal.