Embedded option: related pages

The option value created by the freedom to act in the future of a choice now.

The most widely used method of option valuation. More complex models are sometimes necessary as it uses a number of simplifying assumptions.

The right to buy or sell an asset at a pre-arranged price.

A security is redeemable is the issuer has a right to re-pay the liability it represents and cancel it.

Bonds which can be exchanged for shares on or before maturity.

Structured notes are bonds that contain embedded derivatives.