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.


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https://payrollheaven.com/define/balloon-option/
Modern Language Association (MLA):
Balloon Option. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. November 30, 2021 https://payrollheaven.com/define/balloon-option/.
Chicago Manual of Style (CMS):
Balloon Option. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/balloon-option/ (accessed: November 30, 2021).
American Psychological Association (APA):
Balloon Option. PayrollHeaven.com. Retrieved November 30, 2021, from PayrollHeaven.com website: https://payrollheaven.com/define/balloon-option/

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.