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

Extrapolative statistical models

Models that apply a formula to historical data and project results for a future period. Such models include the simple linear trend model, the simple exponential model, and the simple autoregressive... Read More

Subscribe to the Term of the Day via email Get the Term of the Day in your inbox!


Create your free portfolio