A type of barrier options which is associated with a strike price and a cap barrier above the strike price. The payoff of this call is similar to that of a normal call with the same features, except that in a capped European-style call the buyer will immediately receive a cash amount equal to the difference between the barrier level and the strike price if the underlying reaches or penetrates the barrier from below. This call is non-deferred, i.e., the holder receives cash straight away.
December 16, 2024
