Options and FuturesFinancial Analysis Auditing Compliance Tracking System (FACTS) Discount Rate Offset Hedger Floor Broker (FB) Commission (or Round Turn)
Capped-Style Option
A capped option, as the name suggests, is an option with a predetermined maximum profit limit. This limit is determined by the option's strike price, along with an additional cap interval for a call option or a reduction in the strike price for a put option. It is worth noting that a capped option is automatically exercised when the underlying security's closing price reaches or exceeds the cap price for a call option, or falls at or below the cap price for a put option.
Related terms
Understand the meaning and definition of Financial Analysis Auditing Compliance Tracking System (FACTS) in the context of stock market, trading, and investments.
MOREUnderstand the meaning and definition of Discount Rate in the context of stock market, trading, and investments.
MOREUnderstand the meaning and definition of Offset in the context of stock market, trading, and investments.
MOREUnderstand the meaning and definition of Hedger in the context of stock market, trading, and investments.
MOREUnderstand the meaning and definition of Floor Broker (FB) in the context of stock market, trading, and investments.
MOREUnderstand the meaning and definition of Commission (or Round Turn) in the context of stock market, trading, and investments.
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