Basket Option


Basket Option
A type of option whose underlying asset is a basket of commodities, securities, or currencies.

A currency basket option provides a cheaper method for multinational corporations to receive/sell a basket of several currencies for one specified currency. An example would be MacDonald's buying a basket option involving Indian rupees and British pounds in exchange for U.S. dollars.


Investment dictionary. . 2012.

Look at other dictionaries:

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