Dictionary
Thesaurus
Encyclopedia
Translator
Web
Related Searches
Nearby Words

compound option

 - 2 dictionary results
Strategies for advisors
Free Options strategies, trading tools, best practices & more.
OptionsEducation.org/advisor
Compound Option
Voted Barron's Best Online Broker 4 Years in a row! Trade Options Now.
www.optionsXpress.com
Exotic option models
Desktop tools for valuation & risk management of exotic options.
www.DerivativePricing.com/Exotic
Financial Dictionary

Compound Option

An option on an option. Examples include a call on a call, a put on a put, a call on a put, and a put on a call.

Investopedia Commentary

This type of option usually exists for currency or fixed income markets where an uncertainty exists regarding the option's risk protection capabilities.

Also known as a split-fee option.

Related Links

Options Basics Tutorial

See also: Back Fee, Call, Front Fee, Option, Put

Investopedia.com. Copyright © 1999-2005 - All rights reserved. Owned and Operated by Investopedia Inc.
Cite This Source
Strategies for advisors
Free Options strategies, trading tools, best practices & more.
OptionsEducation.org/advisor
Compound Option
Voted Barron's Best Online Broker 4 Years in a row! Trade Options Now.
www.optionsXpress.com
Financial Dictionary

compound option

An option to purchase an option. Examples include, a call on a call option or a call on a put option. A fee must be paid to buy a compound option and a second payment must be made to the owner of the option in the event the compound option is exercised. Also called split-fee option. See also back fee, front fee.

Wall Street Words: An A to Z Guide to Investment Terms by David L. Scott.
Copyright © 2003. Published by Houghton Mifflin.
Cite This Source
Search another word or see compound option on Thesaurus | Reference
Exotic option models
Desktop tools for valuation & risk management of exotic options.
www.DerivativePricing.com/Exotic
Implied Volatility Charts
Chart Volatility vs. Stock Price Options Tools, Screeners, Tutorial
www.optionistics.com
DON'T Trade Options
DON'T Trade Options Until You See What Happened To Me...
www.TradingDisaster.com
FacebookTwitterFollow us:
Partner Sites:
Ask AnswersEviteExpediaHotelsHotwireLife123LiveDailyMy Way