Definitions for "Compound Option"
Keywords:  expiry, holder, option, prior, buy
An option instrument that gives the holder the right, but not the obligation, to buy another specified option prior to a given expiry date.
An option that gives its purchaser the right to buy a specified option at some time in the future for a premium that is specified today.
an option on another option, and as such presents the holder with two separate exercise dates and decisions