Tag Archives : at-the-money

A cliquet option or also called ratchet option is name given to an exotic option consisting of a series of consecutive forward start options. The first is active on immediate basis.While the second one becomes active when…

In options, a key variable in a derivatives contract between two parties is known as the strike price, or exercise price. Where the delivery of the underlying instrument is required by the contract, the trade will be at the strike price, regardless of the spot price (market price) of the…