Knowledge (XXG)

Chooser option

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1351: 382: 195: 150: 409: 313: 105: 71: 286: 239: 215: 894: 469: 1234: 924: 1056: 792: 1294: 462: 1229: 874: 1269: 807: 661: 455: 888: 1376: 1066: 1170: 981: 1289: 1284: 939: 884: 1239: 909: 899: 767: 608: 540: 1188: 1036: 1021: 986: 929: 443: 325: 1249: 1100: 1016: 593: 914: 1203: 1160: 1150: 1140: 861: 802: 737: 691: 686: 560: 520: 487: 78: 919: 1208: 996: 742: 1259: 1244: 1213: 1198: 1165: 1031: 822: 787: 550: 515: 478: 159: 114: 1264: 1254: 1193: 1180: 1155: 1041: 827: 623: 1145: 1135: 1125: 1084: 1079: 1061: 991: 757: 752: 724: 676: 555: 495: 387: 291: 83: 49: 1355: 1325: 1320: 1274: 1110: 1105: 1051: 961: 869: 842: 782: 777: 747: 696: 681: 598: 578: 439: 25: 1330: 1315: 1115: 1026: 976: 953: 934: 762: 704: 671: 646: 570: 271: 224: 200: 442:(from Derivatives Week and Encyclopedia of Financial Engineering and Risk Management) 1370: 1310: 1279: 1120: 1046: 1006: 1001: 837: 709: 656: 651: 633: 530: 510: 1130: 904: 832: 812: 772: 641: 613: 603: 545: 320: 266: 218: 1011: 879: 850: 846: 797: 588: 583: 262: 242: 108: 36: 1335: 971: 966: 732: 618: 316: 153: 40: 29: 525: 1350: 1095: 817: 714: 535: 258: 17: 447: 33: 254: 74: 107:
the option expires. If the buyer has chosen that it should be a
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In more detail, a chooser option has a specified decision time
28:. It gives the purchaser a fixed period to decide whether the 77:
has to make the decision described above. Finally, at the
390: 328: 294: 274: 227: 203: 162: 117: 86: 52: 1303: 1222: 1179: 1075: 952: 860: 723: 632: 569: 503: 494: 403: 376: 307: 280: 233: 209: 189: 144: 99: 65: 261:, the chooser option can be replicated using one 163: 118: 463: 8: 500: 470: 456: 448: 395: 389: 363: 350: 336: 327: 299: 293: 273: 226: 202: 161: 116: 91: 85: 57: 51: 1295:Power reverse dual-currency note (PRDC) 1235:Constant proportion portfolio insurance 419: 7: 1230:Collateralized debt obligation (CDO) 377:{\displaystyle Ke^{-r(t_{2}-t_{1})}} 14: 1349: 426:Yue-Kuen Kwok, Compound options 1057:Year-on-year inflation-indexed 369: 343: 184: 166: 139: 121: 1: 1067:Zero-coupon inflation-indexed 1270:Foreign exchange derivative 662:Callable bull/bear contract 190:{\displaystyle \max(K-S,0)} 145:{\displaystyle \max(S-K,0)} 1393: 1344: 1171:Stock market index future 485: 1290:Mortgage-backed security 1285:Interest rate derivative 1260:Equity-linked note (ELN) 1245:Credit-linked note (CLN) 1240:Contract for difference 541:Risk-free interest rate 1022:Forward Rate Agreement 405: 378: 309: 282: 235: 211: 191: 152:. For the choice of a 146: 101: 67: 1250:Credit default option 594:Employee stock option 406: 404:{\displaystyle t_{1}} 379: 310: 308:{\displaystyle t_{2}} 283: 236: 212: 192: 147: 102: 100:{\displaystyle t_{2}} 68: 66:{\displaystyle t_{1}} 24:is a special type of 1204:Inflation derivative 1189:Commodity derivative 1161:Single-stock futures 1151:Normal backwardation 1141:Interest rate future 982:Conditional variance 488:Derivative (finance) 388: 384:and expiration time 326: 292: 288:and expiration time 272: 225: 201: 160: 115: 84: 50: 1356:Business portal 1209:Property derivative 1214:Weather derivative 1199:Freight derivative 1181:Exotic derivatives 1101:Commodities future 788:Intermarket spread 551:Synthetic position 479:Derivatives market 401: 374: 305: 278: 231: 221:of the option and 207: 187: 142: 97: 63: 1377:Options (finance) 1364: 1363: 1265:Equity derivative 1255:Credit derivative 1223:Other derivatives 1194:Energy derivative 1156:Perpetual futures 1037:Overnight indexed 987:Constant maturity 948: 947: 895:Finite difference 828:Protective option 281:{\displaystyle K} 234:{\displaystyle S} 210:{\displaystyle K} 1384: 1354: 1353: 1126:Forwards pricing 900:Garman–Kohlhagen 501: 472: 465: 458: 449: 440:Compound options 427: 424: 410: 408: 407: 402: 400: 399: 383: 381: 380: 375: 373: 372: 368: 367: 355: 354: 314: 312: 311: 306: 304: 303: 287: 285: 284: 279: 240: 238: 237: 232: 216: 214: 213: 208: 196: 194: 193: 188: 156:, the payout is 151: 149: 148: 143: 111:, the payout is 106: 104: 103: 98: 96: 95: 72: 70: 69: 64: 62: 61: 1392: 1391: 1387: 1386: 1385: 1383: 1382: 1381: 1367: 1366: 1365: 1360: 1348: 1340: 1326:Great Recession 1321:Government debt 1299: 1275:Fund derivative 1218: 1175: 1136:Futures pricing 1111:Dividend future 1106:Currency future 1089: 1071: 944: 920:Put–call parity 856: 843:Vertical spread 778:Diagonal spread 748:Calendar spread 719: 628: 565: 490: 481: 476: 438:Yue-Kuen Kwok, 435: 430: 425: 421: 417: 391: 386: 385: 359: 346: 332: 324: 323: 295: 290: 289: 270: 269: 251: 223: 222: 199: 198: 158: 157: 113: 112: 87: 82: 81: 79:expiration time 53: 48: 47: 26:option contract 12: 11: 5: 1390: 1388: 1380: 1379: 1369: 1368: 1362: 1361: 1359: 1358: 1345: 1342: 1341: 1339: 1338: 1333: 1331:Municipal debt 1328: 1323: 1318: 1316:Corporate debt 1313: 1307: 1305: 1301: 1300: 1298: 1297: 1292: 1287: 1282: 1277: 1272: 1267: 1262: 1257: 1252: 1247: 1242: 1237: 1232: 1226: 1224: 1220: 1219: 1217: 1216: 1211: 1206: 1201: 1196: 1191: 1185: 1183: 1177: 1176: 1174: 1173: 1168: 1163: 1158: 1153: 1148: 1143: 1138: 1133: 1128: 1123: 1118: 1116:Forward market 1113: 1108: 1103: 1098: 1092: 1090: 1088: 1087: 1082: 1076: 1073: 1072: 1070: 1069: 1064: 1059: 1054: 1049: 1044: 1039: 1034: 1029: 1024: 1019: 1014: 1009: 1004: 999: 997:Credit default 994: 989: 984: 979: 974: 969: 964: 958: 956: 950: 949: 946: 945: 943: 942: 937: 932: 927: 922: 917: 912: 907: 902: 897: 892: 882: 877: 872: 866: 864: 858: 857: 855: 854: 840: 835: 830: 825: 820: 815: 810: 805: 800: 795: 793:Iron butterfly 790: 785: 780: 775: 770: 765: 763:Covered option 760: 755: 750: 745: 740: 735: 729: 727: 721: 720: 718: 717: 712: 707: 702: 701:Mountain range 699: 694: 689: 684: 679: 674: 669: 664: 659: 654: 649: 644: 638: 636: 630: 629: 627: 626: 621: 616: 611: 606: 601: 596: 591: 586: 581: 575: 573: 567: 566: 564: 563: 558: 553: 548: 543: 538: 533: 528: 523: 518: 513: 507: 505: 498: 492: 491: 486: 483: 482: 477: 475: 474: 467: 460: 452: 446: 445: 434: 431: 429: 428: 418: 416: 413: 398: 394: 371: 366: 362: 358: 353: 349: 345: 342: 339: 335: 331: 302: 298: 277: 250: 247: 230: 206: 186: 183: 180: 177: 174: 171: 168: 165: 141: 138: 135: 132: 129: 126: 123: 120: 94: 90: 60: 56: 22:chooser option 13: 10: 9: 6: 4: 3: 2: 1389: 1378: 1375: 1374: 1372: 1357: 1352: 1347: 1346: 1343: 1337: 1334: 1332: 1329: 1327: 1324: 1322: 1319: 1317: 1314: 1312: 1311:Consumer debt 1309: 1308: 1306: 1304:Market issues 1302: 1296: 1293: 1291: 1288: 1286: 1283: 1281: 1280:Fund of funds 1278: 1276: 1273: 1271: 1268: 1266: 1263: 1261: 1258: 1256: 1253: 1251: 1248: 1246: 1243: 1241: 1238: 1236: 1233: 1231: 1228: 1227: 1225: 1221: 1215: 1212: 1210: 1207: 1205: 1202: 1200: 1197: 1195: 1192: 1190: 1187: 1186: 1184: 1182: 1178: 1172: 1169: 1167: 1164: 1162: 1159: 1157: 1154: 1152: 1149: 1147: 1144: 1142: 1139: 1137: 1134: 1132: 1129: 1127: 1124: 1122: 1121:Forward price 1119: 1117: 1114: 1112: 1109: 1107: 1104: 1102: 1099: 1097: 1094: 1093: 1091: 1086: 1083: 1081: 1078: 1077: 1074: 1068: 1065: 1063: 1060: 1058: 1055: 1053: 1050: 1048: 1045: 1043: 1040: 1038: 1035: 1033: 1032:Interest rate 1030: 1028: 1025: 1023: 1020: 1018: 1015: 1013: 1010: 1008: 1005: 1003: 1000: 998: 995: 993: 990: 988: 985: 983: 980: 978: 975: 973: 970: 968: 965: 963: 960: 959: 957: 955: 951: 941: 938: 936: 933: 931: 928: 926: 925:MC Simulation 923: 921: 918: 916: 913: 911: 908: 906: 903: 901: 898: 896: 893: 890: 886: 885:Black–Scholes 883: 881: 878: 876: 873: 871: 868: 867: 865: 863: 859: 852: 848: 844: 841: 839: 838:Risk reversal 836: 834: 831: 829: 826: 824: 821: 819: 816: 814: 811: 809: 806: 804: 801: 799: 796: 794: 791: 789: 786: 784: 781: 779: 776: 774: 771: 769: 768:Credit spread 766: 764: 761: 759: 756: 754: 751: 749: 746: 744: 741: 739: 736: 734: 731: 730: 728: 726: 722: 716: 713: 711: 708: 706: 703: 700: 698: 695: 693: 692:Interest rate 690: 688: 687:Forward start 685: 683: 680: 678: 675: 673: 670: 668: 665: 663: 660: 658: 655: 653: 650: 648: 645: 643: 640: 639: 637: 635: 631: 625: 622: 620: 617: 615: 614:Option styles 612: 610: 607: 605: 602: 600: 597: 595: 592: 590: 587: 585: 582: 580: 577: 576: 574: 572: 568: 562: 559: 557: 554: 552: 549: 547: 544: 542: 539: 537: 534: 532: 531:Open interest 529: 527: 524: 522: 519: 517: 514: 512: 511:Delta neutral 509: 508: 506: 502: 499: 497: 493: 489: 484: 480: 473: 468: 466: 461: 459: 454: 453: 450: 444: 441: 437: 436: 432: 423: 420: 414: 412: 396: 392: 364: 360: 356: 351: 347: 340: 337: 333: 329: 322: 318: 300: 296: 275: 268: 264: 260: 256: 248: 246: 244: 228: 220: 204: 181: 178: 175: 172: 169: 155: 136: 133: 130: 127: 124: 110: 92: 88: 80: 76: 58: 54: 44: 42: 38: 35: 31: 27: 23: 19: 1131:Forward rate 1042:Total return 930:Real options 833:Ratio spread 813:Naked option 773:Debit spread 666: 604:Fixed income 546:Strike price 433:Bibliography 422: 321:strike price 267:strike price 252: 219:strike price 73:, where the 45: 21: 15: 1062:Zero Coupon 992:Correlation 940:Vanna–Volga 798:Iron condor 584:Bond option 263:call option 249:Replication 245:at expiry. 243:stock price 109:call option 1336:Tax policy 1052:Volatility 962:Amortising 803:Jelly roll 738:Box spread 733:Backspread 725:Strategies 561:Volatility 556:the Greeks 521:Expiration 415:References 317:put option 315:, and one 154:put option 41:put option 32:will be a 30:derivative 1027:Inflation 977:Commodity 935:Trinomial 870:Bachelier 862:Valuation 743:Butterfly 677:Commodore 526:Moneyness 357:− 338:− 173:− 128:− 1371:Category 1166:Slippage 1096:Contango 1080:Forwards 1047:Variance 1007:Dividend 1002:Currency 915:Margrabe 910:Lattices 889:equation 875:Binomial 823:Strangle 818:Straddle 715:Swaption 697:Lookback 682:Compound 624:Warrants 599:European 579:American 571:Vanillas 536:Pin risk 516:Exercise 259:dividend 257:without 34:European 1085:Futures 705:Rainbow 672:Cliquet 667:Chooser 647:Barrier 634:Exotics 496:Options 241:is the 217:is the 197:. Here 18:finance 1146:Margin 1012:Equity 905:Heston 808:Ladder 758:Condor 753:Collar 710:Spread 657:Binary 652:Basket 255:stocks 1017:Forex 972:Basis 967:Asset 954:Swaps 880:Black 783:Fence 642:Asian 504:Terms 319:with 265:with 75:buyer 851:Bull 847:Bear 589:Call 253:For 37:call 20:, a 619:Put 411:;. 164:max 119:max 39:or 16:In 1373:: 849:, 609:FX 43:. 891:) 887:( 853:) 845:( 471:e 464:t 457:v 397:1 393:t 370:) 365:1 361:t 352:2 348:t 344:( 341:r 334:e 330:K 301:2 297:t 276:K 229:S 205:K 185:) 182:0 179:, 176:S 170:K 167:( 140:) 137:0 134:, 131:K 125:S 122:( 93:2 89:t 59:1 55:t

Index

finance
option contract
derivative
European
call
put option
buyer
expiration time
call option
put option
strike price
stock price
stocks
dividend
call option
strike price
put option
strike price
Compound options

v
t
e
Derivatives market
Derivative (finance)
Options
Delta neutral
Exercise
Expiration
Moneyness

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