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Meaning / Definition of
Annapurna Option
A mountain range option, named after a mountain range in Nepal, which functions with the set rule that none of the stocks in a composite "basket" drops below a predefined value over a set period of time. The longer the "basket" of stocks stays afloat, the higher the fixed coupon payment; once any of the equities drops below the predefined value, the option's life ends.
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