Chooser Options are options that allow the holder to choose whether their option is a call or a put at a particular future date. There are two forms of chooser option, Simple and Complex.
A Simple chooser option gives the option holder the right to choose whether the option is to be a standard call or put at the decision date. The length of time from the start of the option to the decision date, the strike price, and the expiry date of the option are determined at the start of the contract. Regardless of what the holder chooses a call or a put, the same strike and time to maturity are used.
A Complex chooser option is the same as a simple chooser except that the strike price and time to maturity are specified separately for the call and put at the start of the contract.
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