EFTA Document EFTA01393178

anticipated change in the level of the underlying index, but he must also be right about the degree of the change because the option will have a reduced payout or drop out of the money altogether it the underlying index moves too far in either direction. In that case. a range option holder may lose all or a significant part of his investment in the option. On the other hand, the direction in which the underlying index moves will not affect the payout for a range option as long as it stay