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A call option with a special provision which provides for reset of the strike to a lower level if the underlying falls far enough to hit the trigger price-which is usually the same as the reset strike. The option then becomes a down-and-out call struck at the lower level with an outstrike at an even lower level. If the underlying price continues to decline and hits the outstrike prior to maturity, the call is canceled and expires worthless, regardless of what happens to the asset price after that time. See also Roll-Up Put (diagrams). Compare with Strike-Step Option.
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