A type of option where the cost of purchasing the option is paid gradually as the strike approaches instead of when the trade is initiated. The options contract spells out how much premium must be paid and when. A step premium option is more expensive than a plain vanilla in-the-money option, but less expensive than a contingent premium option. With the latter, the investor does not pay a premium if the option expires out of the money.
A step premium option is considered a structured option. A wide variety of options exist to meet different investment needs, and their premiums reflect the unique risks and rewards associated with each type of option. Investors like options because they offer a cost-efficient way to invest in an underlying asset, they can reduce investment risk when used correctly, they allow the potential for higher percentage returns by using leverage and they provide the flexibility to develop numerous trading strategies.
投融网(www.ipo.hk)，创建于2011年，十年如一日，专注专业：企业投融资、IPO上市咨询辅助、定增、供股、发债、并购、重组、买卖壳资源、财经公关等业务，一站式金融机构及业务对接平台。
投融资俱乐部，入驻120万+ 机构会员，会员可发布及对接投融资需求、筛选优质项目、企业上市辅导、兼并收购等投行业务信息，在线结识更多人脉，构建投融资与上市服务生态圈。
欢迎各类机构洽谈合作。
邮箱：service@ipo.hk
电话：0755-33572246
