Which one of the following four option types has two strike prices?
A.
Asian options
B.
American options
C.
Range options
D.
Shout options
The Answer Is:
C
This question includes an explanation.
Explanation:
Range options, also known as "corridor options" or "double no-touch options," have two strike prices. The payoff for a range option depends on the price of the underlying asset remaining within a specified range between the two strike prices during the life of the option. This dual strike price structure is what distinguishes range options from other types of options.
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