Multiple Choice
Cliquet options are purchased because
A) A portfolio of forward start options is cheaper than buying them separately.
B) There is diversification in a portfolio of forward start options.
C) They are analogous to owning Asian forward options.
D) It is the same as buying rolling forward start options but has the advantage of locking in possibly low volatilities today.
Correct Answer:

Verified
Correct Answer:
Verified
Q2: You hold a floating-strike lookback put option
Q3: Consider an option that pays $1000
Q4: Which of the following statements is accurate
Q5: An option is said to be path-dependent
Q6: A cliquet is equivalent to a family
Q8: The USD/GBP exchange rate is $1.575/
Q9: When volatility increases,the value of a down-and-out
Q10: Consider two paths A and B for
Q11: Given a current stock price
Q12: Consider the following at-the-money options,all of