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EdisonCruise
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Posts: 54
Joined: September 15th, 2012, 4:22 am

Any other method to reduce option price for investor?

August 7th, 2014, 1:06 pm

An investor usually finds the price of a plain vanilla call option costs too much. So up-out option can be used if the investor finds the underlying price cannot go too high. Alternatively, the bank can sell a call and buy a down-in put from the investor to reduce the total cost. I can only figure out these two methods to reduce option price. Is there more strategies to reduce the price and generally accepted by investor?Any suggestions are appreciated.
 
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sladner
Posts: 1
Joined: August 29th, 2011, 3:25 pm

Any other method to reduce option price for investor?

August 8th, 2014, 5:56 pm

asian'ing them is typically palatable