Option contracts that occur in many different forms and have in common the reference to a price range within a contractually fixed term. The content of these contracts, which are often denominated in very high amounts, relates to indices or foreign exchange rates. If the strike price is within the agreed range at the time of settlement at the end of the term, the option holder is paid a fixed amount. If, however, the price is outside the range, the option expires or – depending on the agreement – the holder is compensated with a small amount (sleepy = here in the sense of help to fall asleep). – See bootom-down, option, exotic, swap rate.
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