COMPOUND OPTION

найдено в "Financial and business terms"

compound option: translation

An option on an option. Examples are captions and floortions. American Banker Glossary

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option on an option. Bloomberg Financial Dictionary

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An option on an option. It grants the holder the right to buy or sell an option at a set price on a predetermined date. If the first option is exercised, the underlying option will then behave as a standard option. Compound options offer the opportunity of highly geared investment. Speculative investors lay down relatively little amounts of cash for the compound option and can then decide whether to lay out more cash to buy the underlying option, and finally can decide whether to lay out the cash to buy the underlying financial instrument.

► See also Gearing, Option.

найдено в "Financial and business terms"

Compound option: translation

Option on an option. The New York Times Financial Glossary

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An option on an option. It grants the holder the right to buy or sell an option at a set price on a predetermined date. If the first option is exercised, the underlying option will then behave as a standard option. Compound options offer the opportunity of highly geared investment. Speculative investors lay down relatively little amounts of cash for the compound option and can then decide whether to lay out more cash to buy the underlying option, and finally can decide whether to lay out the cash to buy the underlying financial instrument.

► See also Gearing, Option.

найдено в "Investment dictionary"

Compound Option: translation

An option for which the underlying is another option. Therefore, there are two strike prices and two exercise dates. These are the four types of compound options:

- Call on a call
- Put on a put
- Call on a put
- Put on a call

This type of option usually exists for currency or fixed-income markets, where an uncertainty exists regarding the option's risk protection capabilities. The advantages of compound options are that they allow for large leverage and they are cheaper than straight options. However, if both options are exercised, the total premium will be more than the premium on a single option.

найдено в "Англо-русском экономическом словаре"

Сложный опцион

.Опцион на опционный контракт.Инвестиционная деятельность.