capped-style option

capped-style option definition - business

capped-style option

An option with an established price (the cap price) at which the option will be automatically exercised. The cap price is equal to the strike price plus a predetermined interval for a call option and the strike price less a predetermined interval for a put option.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

Comments
Improve this definition.
Do you have more to add? Share your linguistic knowledge or observation.
/Register to save your comments.