A European option on two stocks that pays at maturity, max(0, ST1-ST2-K), is what sort of option? a. A call spread option b. A put spread option c. Worst-of rainbow call d. An option spread
A European option on two stocks that pays at maturity, max(0, ST1-ST2-K), is what sort of option? a. A call spread option b. A put spread option c. Worst-of rainbow call d. An option spread
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Transcribed Image Text:A European option on two stocks that pays at
maturity, max(0, ST1-ST2-K), is what sort of
option?
a. A call spread option
b. A put spread option
c. Worst-of rainbow call
d. An option spread
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