The Law Dictionary

Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.

FORWARD START OPTION Definition & Legal Meaning

Definition & Citations:

An OVERTHECOUNTER COMPLEX OPTION that is contracted on trade date t to commence on forward date t+1, with the forward start date, STRIKE PRICE, and final maturity parameters established on trade date. Once the forward date is reached a conventional EUROPEAN OPTION comes into existence.


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