Exchange Currency

chooser option

An option that allows the buyer within a fixed period of time to determine if the derivative will be a call or put option. The buyer has to make this decision within a fixed period of time before expiration. Depending on the buyer's choice, if it is a put option then the payout is calculated with the formula- max (K - S,0) and a call option has a payout- max(S - K,0), where K is the strike price and S the stock price.

Related information about chooser option:
  1. Chooser option - Wikipedia, the free encyclopedia
    No reason has been cited for the Wikify tag on this article.You can insert a reason using the |reason= parameter, like this: {{Wikify|reason=Your reason here}} ...
     
  2. Chooser Option - ASC
    A chooser option gives its holder the right to choose whether the option is a call or a put at a ... At this time, the value of a chooser option is max {c, p} where ...
     
  3. Chooser Option Definition | Investopedia
    An option contract that allows the holder to decide whether it is a call or put prior to the expiration date. Chooser options usually have the same exercise price ...
     
  4. SuperDerivatives - Glossary - Chooser option
    The central feature of a chooser option is that although you have to decide its strike and expiry date in advance you do not need to decide whether it is actually a ...
     
  5. Chooser Options
    Rubinstein goes on to show that this is an equivalent position in a long call and short put, giving us a chooser option in terms of European vanilla options.
     
  6. Solution to the Chooser Question - Andrew.cmu.edu
    The payoff of the chooser option at time 1 is given by max[C(S1,X,1),P(S1,X,1)], where C(S1,X,1) is the value of a call option that matures at time 2, with exercise ...
     
  7. Chooser Option
    A chooser option (or preference option) is a path dependent option for which the purchaser pays an up-front premium and has the choice of having the derivative ...
     
  8. Chooser Option - Financial Dictionary - The Free Dictionary
    An option that gives its holder the right to choose at a pre-specified time (before maturity) whether the option is a call or a put.