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Derivatives




Step-Down Option


A step option which is equipped with a downward strike price reset mechanism effective within a limited period at a certain future date and/ or as a result of a drop in the underlying to a prespecified level. The strike price of the option is downwardly readjusted at predefined fixing dates, only if the spot price is better than that of the immediate previous fixing date.



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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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