Derivatives

Choice Min-Max Option

August 5, 2021
Forex

Dealing Desk Broker

August 5, 2021

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A reset option whose strike price is reset to the prevailing price of its underlying on a predetermined reset date if the option (call option) is out-of-the-money on that date. The strike price at expiration is not fixed at initiation, but rather it depends on the actual realization of the asset price path, i.e., the asset values on the predetermined reset dates.

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