capped-style option investment & finance definition An option with an established price (the cap price) at which the option will be automatically exercised.
Capped-Style Option A capped option is an option with an established profit cap or cap price. The cap price is equal to the option's strike price plus a cap interval for a call option or the strike price minus a cap interval for a put option.
Capped-style Option An option with an established profit cap or cap price. Cash Account An account in which the customer is required to pay in full for all purchased securities.
CAPM See Capital Asset Pricing Model capped-style option An option with a pre-established profit limit.Also called a capped option.... capping Artificially keeping the price of a stock low or actively lowering it by applying...
See also: Put Option, Share, Investment, Right, Exercise
 
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