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   Diff or Difference Option
   















 

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Diff or Difference Option

(1) An option on the forward interest rate differential (DIFF) between comparable instruments denominated in different currencies. (2) A spread or outperformance option with a payout linked to the price or rate difference between two underlyings. See, for example, Yield Differential Warrant, Outperformance Option (diagram), Spread Option. See also Contract for Differences.

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