Meaning BASKET OPTIONS: Packages that involve the exchange of more than two currencies against a base currency at expiration. The basket option buyer purchases the right, but not the obligation, to receive designated currencies in exchange for a base currency, either at the prevailing foreign exchange market rate or at a prearranged rate of exchange. Multinational corporations with multicurrency cash flows frequently use basket options because it is generally cheaper to buy an option on a basket of currencies than to buy individual options on each of the currencies that make up the basket
More terms such as Basket options in Dictionary B.
- Definition Bogey:
- Examples The return an investment manager is compared to for performance evaluation basket options definition.
- Definition Bond Anticipation Note (BAN):
- Examples A short-term debt instrument issued by a state or municipality to borrow against the proceeds of an upcoming bond issue basket options explain.
- Definition Bank Anticipation Notes (BAN):
- Examples Notes issued by states and municipalities to obtain interim financing for projects that will eventually be funded long term through the sale of a bond issue basket options what is.
- Definition Bank Discount Basis:
- Examples A convention used for quoting bids and offers for Treasury bills in terms of annualized yield, based on a 360-day year basket options meaning.
- Definition Buy-Side Analyst:
- Examples A financial analyst employed by a nonbrokerage firm, typically one of the larger money management firms that purchases securities on its own account basket options abbreviation.
