What is a Russian Option?
How Does a Russian Option Work?
As a lookback option, a Russian option may be exercised according to American or mid-Atlantic settlement rules based on the underlying security's most profitable market price during the life of the option. Russian options differ from other lookback options in that they do not comprise an expiration date.
Why Does a Russian Option Matter?
Without an expiration date, a Russian option gives the holder the freedom to exercise when he feels the underlying security has reached the most beneficial level regardless of how short or how long the holding period. In this respect, Russian options are recommended for seasoned investors due to the potential for high risk if held over long periods of time.
Personalized Financial Plans for an Uncertain Market
In today’s uncertain market, investors are looking for answers to help them grow and protect their savings. So we partnered with Vanguard Advisers -- one of the most trusted names in finance -- to offer you a financial plan built to withstand a variety of market and economic conditions. A Vanguard advisor will craft your customized plan and then manage your savings, giving you more confidence to help you meet your goals. Click here to get started.
Read This Next
With all of the discussion about the widening income gap in America, you may be wondering where you fall in the equation. Are...Read More →
Each week, one of our investing experts answers a reader's question in our InvestingAnswers' Q&A column. Send us yours at...Read More →
Homeowners across the country are getting squeezed by their homeowners insurance premiums. That's because in an attempt to stop their financial bloodletting, home insurance companies are looking...Read More →
UPDATE: Check out our latest list, "10 Middle Class Jobs That Will Vanish By 2020."...Read More →