Search
Generic filters
Filter by Categories
Accounting
Banking

Derivatives




Compound Option


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

A cacall is is another variant of compound 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    Your email address will not be published.*