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| Stock Index Contingent Option |
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Stock Index Contingent Option
A put or call on a stock index that has value only if it is in the money and if an additional condition, usually an interest rate level, is satisfied. An example might be a call on the CAC 40 index, conditional on a six month PIBOR rate below 6% at the option's expiration (exercise) date. See Contingent Payout Option (diagram).
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Glossary *
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