This definition gets deep in the weeds in the options market. We'll try to keep it relatively simple, but here we go...
In options trading, there's a thing called mountain ranges. This is a nickname for a type of option that combines aspects of options for different underlying securities. There are a bunch of these, each of them operating in specific ways and each named after famous mountain ranges (or individual mountains) in the world: Annapurna, Everest, Himalayan, etc.
Among these mountain range options, there's the Altiplano variety. (The Altiplano is actually a plateau region in the Andes mountains, a range located in South America.) The Altiplano option starts with a standard option for some combination of underlying assets (say shares of different companies' stocks). On top of this is added a type of option that provides a pay out if the stocks don't get to their strike prices during the option period.
So the Altiplano basically combines an option betting that the assets will get to certain prices in a certain period of time with an option providing some insurance if the prices aren't reached.
Related or Semi-related Video
Finance: What is Intrinsic Value (of An ...6 Views
Finance allah shmoop what is the intrinsic value of an
option All right this is brandi She owns a twelve
dollars strike price call option toe buy a share of
my fifteen minutes are up dot com a retirement home
chain for reality tv stars who recently gained self awareness
Well the stock is trading for fifteen bucks a share
of this moment Her strike price is twelve so the
intrinsic value of that option is fifteen minutes twelve or
three bucks that is it is three dollars in the
money and if brandy converted it into a share this
moment and then immediately sold the stock for fifteen dollars
in cash well she'd make three bucks But there's a
catch per call option doesn't expire for five weeks so
that three dollars in the money is actually worth more
than three dollars because she has data or time yet
to exercise and convert or just sell the option itself
So it's worth mohr because well a stock might go
up from fifteen dollars in overtime Stocks go up so
in the next five weeks well couldn't go up a
dime twenty cents twenty five cents and make that three
Dollars worth three ten three twenty three Twenty five Sure
sure it could happen So yeah that's The difference between
actual value and intrinsic value You get seita kickers in
there making the option's worth more than just converting them
into stock and selling them right there And yeah it
looks like our one and a half minutes are up
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