A simple chooser option gives the owner the right to choose at some point in the future (t, before expiration T) whether the option is to be a vanilla call or put option. The choice is made based on which of the two vanilla options is the most expensive at the time of choice.

List of symbols

	Value of the chooser option at the choice date
t	Choice date. At this date a choice between a call or put is made
T	Expiration date of the call and put
	Value of the call option at expiration
	Value of the put option at expiration
K	Strike (excercise) price

All text and equations on this page are freely available under the terms of the GNU Free Documentation License