DAVIS, MARK H.A.; SCHACHERMAYER, WALTER; TOMPKINS, ROBERT G. - In: The Journal of Risk Finance 3 (2002) 2, pp. 46-52
This article discusses static hedges for installment options, which are finding broad application in cases where the option‐buyer may reduce up‐front premium costs via early termination of an option. An installment option is a European option in which the premium, instead of being paid up...