Balloon Option

Business, Legal & Accounting Glossary

Definition: Balloon Option

Balloon Option

Full Definition of Balloon Option

Contract option with a strike price that increases by a specified ratio after an asset price reaches a stated threshold. For example, if an asset goes above $100 per unit, the strike price may increase by $4 for every dollar more the asset reaches.

Cite Term

To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
Modern Language Association (MLA):
Balloon Option. Payroll & Accounting Heaven Ltd. November 30, 2021
Chicago Manual of Style (CMS):
Balloon Option. Payroll & Accounting Heaven Ltd. (accessed: November 30, 2021).
American Psychological Association (APA):
Balloon Option. Retrieved November 30, 2021, from website:

Definition Sources

Definitions for Balloon Option are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 20th November, 2021 | 0 Views.