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Derivatives




Infinite Ladder Option


A ladder option that has no limit on the number of price levels (rungs) on the ladder. Unlike most ladder options which have a predetermined number of price levels, this option has an open-ended (infinite) lock-in feature. An infinite ladder option approximates a lookback option when the small distance between the rungs is limited, i.e., every time the underlying’s price increases, the gain is locked in.



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Derivatives have increasingly become very important tools in finance over the last three decades. Many different types of derivatives are now traded actively on ...
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