Deferred strike option

Definition:

An option where the strike price can be specified as the underlying asset price any time before maturity. After the strike is specified, the option becomes a vanilla option until maturity of the option.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Historical Cost Accounting Convention

An accounting technique that values an asset for balance sheet purposes at the price paid for the asset at the time of its acquisition.

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