Derivatives

Cacall

September 9, 2021
Finance

Sector Swap

September 9, 2021

Share

An exotic option (also called compound option) in which a call option is made on a put option, whereby giving the holder the right to purchase another option. That means, this option entitles the holder to purchase a specific put when the price of its underlying assets goes down. This type of option only trades over the counter (OTC), and so, it is quite hard to enter into a position with this option.

This option is also known as a CoP.

Leave a Reply

Related Tags

All Topics in the Letter