Cliquet Options Are Purchased Because

question 13

Multiple Choice

Cliquet options are purchased because

• A) A portfolio of forward start options is cheaper than buying them separately.
• B) There is diversification in a portfolio of forward start options.
• C) They are analogous to owning Asian forward options.
• D) It is the same as buying rolling forward start options but has the advantage of locking in possibly low volatilities today.

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Definitions:

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The impact that an individual's character traits have on their behaviors, reactions, and interactions with others.

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