Define embedded options

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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Define embedded options

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Embedded options are considered to be very much beneficial for both individuals as investors & also for companies as they provide number of flexibility. The biggest advantage is that they themselves can design the financial securities to suit their requirements.

There are various types of embedded options like capped floating rate provision, call provision etc.

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