Derivatives

Deferred Price Option

August 12, 2021
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Sunshine Trading

August 12, 2021

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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.

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