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Outperformance Option
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The Payout Patterns of an Outperformance Option A call option with a payoff based on the amount by which one of two underlying instruments or indexes outperforms the other. Also called Dual Option, Exchange Option, Specialty Option, Margrabe Option, Multi-Index Option, Relative Performance Option (RPO), Spread Option. See also Cross- Currency Option or Warrant Bonds. Compare to Alternative Option (diagram), Alternative Currency Option. See Diff or Difference Option, Rainbow Option, Multi-Asset Option.
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