MARGRABE OPTION
\mˈɑːɡɹe͡ɪb ˈɒpʃən], \mˈɑːɡɹeɪb ˈɒpʃən], \m_ˈɑː_ɡ_ɹ_eɪ_b ˈɒ_p_ʃ_ə_n]\
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US risk-management consultant William Margrabe invented this in 1978. Exchanging of one asset for another as the basis of a futures contract, like a cross currency option. He also devised a price calculation formula. Also known as exchangeable option or outperformance option. Also refer to rainbow option.
By Henry Campbell Black
Word of the day
ACTUAL CHANGE OF POSSESSION
- In statutes of frauds. An open, visible, and unequivocal change possession, manifested by the usual outward signs, as distinguished from a merely formal or constructive change. Randall Parker, 3 Sandf. (Y.) 09; Murcii v. Swensen, 40 Minn. 421, 42 N. W. 290; Dodge v. .Tones, 7 Mont. 121, 14 Pac. 707; Stevens Irwin, 15 Cal. 503. 76 Am. Dec. 500