Forward start option

In finance, a forward start option is an option that starts at a specified future date with an expiration date set further in the future.[1]

A forward start option starts at a specified date in the future; however, the premium is paid in advance, and the time of expiration is established at the time the forward start option is purchased.[2]

  1. ^ Musiela-Rutkowski: Martingale Methods in Financial Modelling, 2nd Edition, page 231
  2. ^ Riskglossary.com

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