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

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Tax-neutrality

Characteristic that taxes do not interfere with the natural flow of capital toward its most productive use.

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