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Contingent Exchange Option
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An option to exchange one asset (a managed portfolio, for example) for another asset (a benchmark portfolio, for example) when the managed portfolio underperforms the benchmark portfolio by a prespecified amount and simultaneously drops below a prespecified hurdle value. This option protects a portfolio manager from concurrently experiencing unfavorable absolute and relative performance. See also Exchange Option. See Multi-Asset Option.
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Glossary *
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