compound option investment & finance definition
An option to purchase an option. Examples include, a call on a call option or a call on a put option.
Compound Option
An option on an option, the dates and price of such option being fixed.
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Compound Option
An option for which the underlying is another option. Therefore, there are two strike prices and two exercise dates. These are the four types of compound options:
- Call on a call
- Put on a put
- Call on a put
- Put on a call ...
COMPOUND OPTIONS A major family of exotic options. They are options on options. The underlying asset is an option rather than a tangible commodity or security.
Compound option
Option on an option.
Compounding
The process of accumulating the time value of money forward in time. For example, interest earned in one period earns additional interest during each subsequent time period.
A compound option strategy that consists of either a long currency position (a long out-of-money put and a short out-of-the-money call, ...
A compound option strategy that co... Condor spread : A compound option strategy that consists of either four s... Counter Currency : The second listed Currency in a Currency Pair.
Calendar combination : A compound option strategy that consists of the simultaneous...
Calendar Spread : An option position comprised of purchase and sale of two option c...
Calendar combination : A compound option strategy that consists of the si...
Calendar Spread : An option position comprised of purchase and sale of tw...
Calendar straddle : A compound option strategy that consists of simultane...
Also known as a Compound Option (q.v.). A special case of an Installment Option (q.v.). SPOOs or SPUs S&P 500 index futures - from its ticker symbol: SPU.
Compound Option - Having an option on an option.
Convergence - Change in price of a futures contract towards the price of the underlying cash commodity.
 See also: Market, Exchange, Option, Currency, Future
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