The Law Dictionary

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COMPLEX OPTION Definition & Legal Meaning

Definition & Citations:

A conventional OPTION that is modified with respect to time, price, and/or payoff to produce unique RISK MANAGEMENT, investment, or speculative results. Certain complex options have risky payout profiles/LIABILITIES and demand considerable technical resources to ensure proper pricing and management. Also known as EXOTIC OPTION. See also PATH DEPENDENT OPTION, PATH INDEPENDENT OPTION.


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