TRIGGER

 

  • Many path-dependent options have payouts that depend on the underlying asset or index or coupons paid/payable reaching a specified level before the expiry date. This level is the trigger. Some options have more than one trigger level, in which case the payouts are conditional or increase with the number of triggers activated or the order in which they are activated.

 

Related Terms:

Option        Parisian barrier option

Back to Index

Recognized and Awarded Expertise