Derivatives

Binary Range Option

July 16, 2021
Banking

Repudiation

July 16, 2021

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A provision which is typically attached to a CAPS option, whereby it terminates before expiration date and is settled at the maximum level hit by the underlying index as soon as that index reaches or breaks through a pre-determined outstrike price at any point during the option’s life.

It is alternatively referred to as an early exercise price trigger.

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