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.
Derivatives
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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