Capped Style Option
Definition of Capped Style Option
Related Terms
Pump and Dump
At The Opening
Zero-Coupon Bond
Interest Rate Futures
Just like any other futures contract, interest rate futures also give the right and obligation to fulfil the terms of the contract on expiry.
The price of interest rate futures and the interest rate itself shares an inverse relationship. If interest rates move higher, then the futures will be less valuable.
Equities
Forex Options
Every forex option can be split into a call or put option. A forex call option gives the holder the right to buy underlying forex pairs while a forex put option gives the holder the right to sell underlying currency pairs.
In either case, there is no obligation to exercise the contract but there is a pre-agreed price and expiration date attached. In India, forex options are only available for the USD-INR currency pair.

