Margrabe Option is the option to exchange one asset for another. Margrabe (1978) showed several applications for this sort of option (margin account, corporate exchange offer, and standby commitment) and derived a model for pricing this option. Other people discovered numerous additional examples of this option. The Cross Currency Option (q. V.) is a prime example. The option goes also by the names Exchange Option (q. V.) and Outperformance Option (q. V.).
Barry Goldsmith
| APA | Barry Goldsmith. (2010). margrabe option. Retrieved September 26, 2026, from http://smartdefine.org/margrabe_option/definitions/1157777 |
| Chicago | Barry Goldsmith. 2010. "margrabe option" http://smartdefine.org/margrabe_option/definitions/1157777 (accessed September 26, 2026). |
| Harvard | Barry Goldsmith 2010, margrabe option, Smart Define, viewed 26 September, 2026, <http://smartdefine.org/margrabe_option/definitions/1157777>. |
| MLA | Barry Goldsmith. "margrabe option" 21 October 2010. Web. 26 September 2026. <http://smartdefine.org/margrabe_option/definitions/1157777> |