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Webster's New World Finance and Investment Dictionary » ladder option
ladder option
ladder option definition - finance
An
exotic option that lets the option owner capture and lock-in gains on the
underlying security during the life of the option. If the price of the
underlying security reaches certain thresholds, such as 25 percent or 50
percent above the exercise price, then the holder of the warrant receives a
minimum payment. Also called lock-step
option and step-lock option.
Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.
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