The strike of an option contract that can be changed during the life of the option. For example, a commodity option is struck at $50. After a specific period of time (one month, two months, etc), the contract allows the strike to be adjusted by a certain percentage (say 10%) or to be the maximum of $50 and 10% over the spot price on the resetting date (resettable fixing date).
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 ...
Watch on Youtube
Comments