Options and FuturesSelling Hedge or Short Hedge Premium (options) Book Entry Securities Open Interest Offset Federal Funds Rate
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 Selling Hedge or Short Hedge in the context of stock market, trading, and investments.
MOREUnderstand the meaning and definition of Premium (options) in the context of stock market, trading, and investments.
MOREUnderstand the meaning and definition of Book Entry Securities in the context of stock market, trading, and investments.
MOREUnderstand the meaning and definition of Open Interest 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 Federal Funds Rate in the context of stock market, trading, and investments.
MORE
Explore other categories
10 Cr+DOWNLOADS
Enjoy Zero Brokerage On Stock Investments
Get the link to download the App
