1 Ladder Option
If the barrier L>K is reached over the life of the option, a ladder option at expiration pays max (0, L − K, St − K). If the barrier is not reached, the option pays max (0, St − K).
Ladder options are “more path-dependent” than barrier options. Normally, there are several prespecified ladders or rungs in a ladder option. Whenever the underlying asset price reaches a prespecified higher level in a series of prespecified rungs, the intrinsic value of the option is locked. [See also Barrier Option]
2 Ladder Strategy
When investing bonds, allocating roughly equivalent amounts (portions) to different maturities.
3 Lagged Reserve Accounting
System of reserve requirements based on deposits outstanding prior to the reserve maintenance period.
4 Lagging Indicator
[See Business cycle]
5 Lambda
Another name for vega. [See Vega]
6 Lattice
A binomial tree in which an up move followed by a down move leads to the same price as a down move followed by an up move. Also called a recombining...
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(2006). L. In: Lee, CF., Lee, A.C. (eds) Encyclopedia of Finance. Springer, Boston, MA. https://doi.org/10.1007/978-0-387-26336-6_12
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