Basket option

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A basket option is a financial derivative, more specifically an exotic option, whose underlying is a weighted sum or average of different assets that have been grouped together in a basket. For example, an index option, where a number of stocks have been grouped together in an index and the option is based on the price of the index.[1][2]

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References[edit]

  1. ^ "Basket option". The Financial Engineer. 2014. Retrieved 14 December 2016. 
  2. ^ Hakala, Jürgen; Wystup, Uwe (2008). "FX Basket Options" (pdf). Frankfurt School of Finance & Management. p. 4. Retrieved 14 December 2016.