Capped options are a variation of vanilla call and put options. Capped options limit the amount of payout for the option holder, but also reduce the price the option buyer will pay.

What is capped forward?

An option-based strategy that involves buying a synthetic off-market currency forward and simultaneously buying another option, in order to avail from favorable exchange rate movements. The synthetic forward is constructed by buying and selling a put and a call at the same strike price.

What is a convertible call spread?

In a typical concurrent convertible plus call spread transaction, the issuer sells the convertible to investors, purchases a call option from its investment banks (the long lower call) while concurrently selling the bank another call option with a higher strike (often dubbed the warrant).