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Reset Option or Warrant
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Reset Effect of a Limited Period Reset Call Option Typically, a stock or equity index call option or warrant whose strike price may be reset to a lower strike or a put whose strike price may be reset to a higher strike at some point during the life of the instrument if the option is out of the money on the reset date. There may be a limit to the magnitude of the strike price adjustment and the reset may be triggered by a specific price on the underlying rather than set on a specific reset date. Also called Strike Reset Option or Warrant. See Anti-Crash Warrant, Partial Lookback Warrant or Option, Step-Down Option or Warrant, Barrier Option, Reset Date (2). See also Path-Dependent Option.
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