Variance Option

This Issue in United States

Variance Option

Concept of Variance Option in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): An option (i.e. the right to buy or sell a financial instrument at some agreed conditions) that uses the variance (being the volatility squared) of an underlying’s price movement over a period as the basis for determining whether or not the option will be exercised

Resources

See Also

• Derivatives Contract