Basket Option is a type of financial derivative where the - TopicsExpress



          

Basket Option is a type of financial derivative where the underlying asset is a group of commodities, securities or currencies. Like other options, a basket option gives the holder the right, but not the obligation, to buy or sell an underlying asset at a specific price, on or before a certain date (the holder has the option to buy or sell, or to let the option expire worthless). With a basket option, however, the holder has the right, but not the obligation, to buy or sell a group of underlying assets. A basket option is considered an exotic option.
Posted on: Thu, 06 Jun 2013 07:25:10 +0000

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