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  • Monday, April 28, 2025
  • The Financial Encyclopedia
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Derivatives

  Derivatives   |   Terms
  • 204
  • January 21, 2023
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Backward Starting Option

An option in which the average underlying price is computed over a subinterval of the trading period, rather than the whole trading period. The subinterval usually has a specific starting point in time. This option provides investors with an opportunity to partially look back in hindsight.


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