Stock Index Option


Stock Index Option is a direct subtype of Vanilla Option
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with functions Stock Index Option Functions, keys Stock Index Option keys and example object VanOptStkInd

TYPE INCLUSION RELATIONSHIPS

Vanilla Option

Stock Index Option

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AVAILABLE FUNCTIONS

Create

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AVAILABLE CREATE FUNCTION KEYS

Stock Index

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TYPICAL OBJECTS OF TYPE Stock Index Option

VanOptStkInd

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This type represents a specialization where the underlying is the portfolio of stocks associated with a given Stock Index.
Cash settlement ensures that no exchange of actual stocks takes place during exercise. Only cach is exchanged based on the portfolio's value, as determined by the index at the time of exercise.

The pricing methodology is specified in Model[Vanilla Option]