Derivatives
Deferred Price Option
August 12, 2021
Exchanges
Sunshine Trading
August 12, 2021

An option whose strike price is not specified at the time of the trade. Instead, it is set as the underlying price anytime before expiration date. Once the strike is specified, the option turns into a vanilla option, and continues to be so till maturity.

It is also called a forward start option or a deferred price option.

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Posts