Equity Flex Options for the Hedge Fund Manager

Abstract

In contrast to standardized options, equity flex options permit significant contract customization by the parties to the trade, and these options are exempt from the position limits that apply to standard options. In this article, these interesting tools are examined from the perspective of the hedge fund manager, whose needs are somewhat different and, in a sense, more specialized than the needs of the general trader, investor, or corporate treasurer whose needs have been the subject of earlier work.