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Derivatives

  Derivatives   |   Terms
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  • September 9, 2021
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Caput

An exotic option (also called compound option) in which a call option is made on a put option, whereby giving the holder the right to purchase another option. That means, this option entitles the holder to purchase a specific put when the price of its underlying assets goes down. This type of option only trades over the counter (OTC), and so, it is quite hard to enter into a position with this option.

This option is also known as a CoP.


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