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.

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