What is ‘TAPO’
An option in which the profit or loss to the investor is based not solely on the price of the underlying asset at expiration, but on the difference between the strike price and the average price of the underlying asset during the option’s term. A TAPO, Traded Average Price Option, (traded average price option) is also known as an Asian option.
Explaining ‘TAPO’
One exchange where TAPOs are commonly traded is the London Metal Exchange, a major marketplace for futures in non-ferrous metals such as aluminum, copper, lead and zinc. These call and put options come in contract lengths ranging from one to 27 calendar months and their settlement price is determined by the monthly average settlement price. TAPOs, traded options and futures are all used as hedging tools.
Further Reading
- Alterations in the financial markets of the Baltic countries and Russia in the period of economic downturn – www.tandfonline.com [PDF]
- The Role of Currency Board Regime during Economic Crisis – www.inzeko.ktu.lt [PDF]
- The short-run relationship between stock market prices and macroeconomic variables in Lithuania: an application of the impulse response function – etalpykla.lituanistikadb.lt [PDF]
- Estimating the negative impact of business failures on Lithuania – etalpykla.lituanistikadb.lt [PDF]
- Economic cycle and credit volume interaction: case of Lithuania – etalpykla.lituanistikadb.lt [PDF]
- The importance of personal finance for investment and applying financial behaviour principles in personal finance investment decisions in Lithuania – www.ceeol.com [PDF]
- The importance of personal finance for investment and applying financial behaviour principles in personal finance investment decisions in Lithuania – repository.mruni.eu [PDF]
- Fiscal harmonization and economic integration in the European Union – www.inzeko.ktu.lt [PDF]
- Problems of public sector accounting and financial reporting standards implementation into practice – journals.vgtu.lt [PDF]
- Role of foreign Banking Institutions in the European union's New financial Markets – etalpykla.lituanistikadb.lt [PDF]
