Filter by Categories
Accounting
Banking

Derivatives




Option on the Minimum


An option where the holder is long put on the worst performing stock (asset) among a specified number of stocks (assets), i.e., the basket. The holder receives the payoff based on the performance of the worst (lowest) return in the basket (also an indice).

This type of options is usually priced by using a Monte Carlo process.

It is also known as a worst-of option.



ABC
Derivatives have increasingly become very important tools in finance over the last three decades. Many different types of derivatives are now traded actively on ...
Watch on Youtube
Remember to read our privacy policy before submission of your comments or any suggestions. Please keep comments relevant, respectful, and as much concise as possible. By commenting you are required to follow our community guidelines.

Comments


    Leave Your Comment

    Your email address will not be published.*