Equity Index Installment Option

Finance
Above The Line
January 20, 2022
Derivatives
Equity Derivative
January 20, 2022

An installment option which has an equity index as underlying. The option premium is paid on a periodical basis- monthly or quarterly- over the life of the option, while the holder is entitled to stop making payments, and as such terminate the option on the due date of the first payment that has been missed.

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