DEFINITION
Embedded Option

"Embedded option": 1. A provision in a debt security which allows the issuer or the holder to exercise an option - this is generally a call option (issuer) or a put option (holder). The option is generally linked to specific dates and may be subject to other conditions. 2. A provision in a debt security which links payments on the security to pre-specified changes in an underlying security, currency, index or commodity.
Loading conversations.
Similar or Related Terms
Statistics
348
Characters
71
Words
36.49
Flesch Reading Ease
12.6
Flesch Kincaid Grade