What is double option?

A option contract to buy or sell an underling asset at strike price in the future, a combination of call and put rolled into a single option contract. A double option gives the holder the right either to buy or to sell the underlying asset at the strike price. That is, there are three choices for a double option: buy, sell, or do nothing and allow the option to expire. Double options are traded in Europe. When one side of the option is exercised, the opposite side is automatically terminated.

 

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