Basket Option

  

There are a lot of financial terms containing the word "basket." The common thread between them? Things are grouped together (duh).

For a basket option, the underlying asset would be a collection of assets, currencies, securities, etc. The holder is not obligated, but has the right to sell or purchase an asset at a particular price within a specified timeframe. An advantage to the basket option is that it's less expensive than multiple individual option transactions, since multiple assets are "basketed" together in one transaction.

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Finance: What is a Country Basket (Index...30 Views

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Finance, a la shmoop. What is a country basket index fund?

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All right we're picking daisies, marigolds, lilies so uh how do we [Pictures of flowers]

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rephrase in Italian? Like, we want to fill a portfolio basket with just stocks [Pouring a glass of red wine]

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representing the overall financial health of Italy. Is Italy healthy? While

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they smoke a lot they drink a lot of wine they eat a bunch of pasta but there

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always seems to be a woman from some small village who's celebrating her [Old woman at a birthday party]

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117th birthday over there. Well a country basket is just an index fund of

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stocks representing a country. Like we're doing Korea... South we're gonna have

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in that basket dunno some Samsung, a load of Daewoo, a hunk of Hyundai and some [Company stocks being added to the basket]

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nice barbecue on the side. That'd be our Korean country basket and it's a good

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flower on which to place your bets. It's like instead of trying to decide between [The stocks in the basket turn into flowers]

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roulette or poker or slots... Well you just buy stock in Las Vegas

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Sands you know you bet on the entire casino, and bueno Fortuna you know good [Someone checking their cards in a casino]

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luck there pal, doesn't the house always win? Yeah so why do people keep going there?...

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