Dictionary
Thesaurus
Encyclopedia
Translator
Web

path dependent option

 - 1 dictionary result
Financial Dictionary

Path Dependent Option

An exotic option that is valued according to pre-determined price requirements for its underlying asset or commodity.

Investopedia Commentary

The payoffs associated with these options are determined by the path of the underlying asset's price. Examples include Asian, Barrier and lookback options.

Related Links

Options Basics Tutorial

See also: Asian Option, Barrier Option, Exotic Option, Lookback Option, Underlying

Also spelled: path-dependent, path dependant

Investopedia.com. Copyright © 1999-2005 - All rights reserved. Owned and Operated by Investopedia Inc.
Cite This Source
Search another word or see path dependent option on Thesaurus | Reference
FacebookTwitterFollow us: