Define: Zero Cost Option

UK Accounting Glossary

Definition: Zero Cost Option


Quick Summary of Zero Cost Option


A Zero-Cost Option is a strategy where one option is purchased by simultaneously selling another option of the same value.



What is the dictionary definition of Zero Cost Option?

Dictionary Definition


A strategy in trading where one option purchased is equal to one option sold.


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https://payrollheaven.com/define/zero-cost-option/
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Zero Cost Option. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. March 31, 2020 https://payrollheaven.com/define/zero-cost-option/.
Chicago Manual of Style (CMS):
Zero Cost Option. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/zero-cost-option/ (accessed: March 31, 2020).
American Psychological Association (APA):
Zero Cost Option. PayrollHeaven.com. Retrieved March 31, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/zero-cost-option/

Definition Sources


Definitions for Zero Cost 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: 9th December 2019.