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Cliquet Options Are Purchased Because

Question 7

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.

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