This definition gets deep in the weeds in the options market. We'll try to keep it relatively simple, but here we go...
In options trading, there's a thing called mountain ranges. This is a nickname for a type of option that combines aspects of options for different underlying securities. There are a bunch of these, each of them operating in specific ways and each named after famous mountain ranges (or individual mountains) in the world: Annapurna, Everest, Himalayan, etc.
Among these mountain range options, there's the Altiplano variety. (The Altiplano is actually a plateau region in the Andes mountains, a range located in South America.) The Altiplano option starts with a standard option for some combination of underlying assets (say shares of different companies' stocks). On top of this is added a type of option that provides a pay out if the stocks don't get to their strike prices during the option period.
So the Altiplano basically combines an option betting that the assets will get to certain prices in a certain period of time with an option providing some insurance if the prices aren't reached.
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Finance: What is a Residual Claim To Ass...2 Views
Finance a la shmoop what is a residual claim to assets? alright people here's an
investment and here's an investment gone bad well here's the result and you have [Cash burning]
a claim to the crumbs of dollar bills here the investment in hair for days.com
didn't go so well instead of regrowing hair as it promised
it actually made hair disappear in you know other places so the investors eight
million bucks is mostly gone Microsoft is buying the company for a
scrap price of five million since you were the preferred stock investor and
there was no debt junior or senior or otherwise no IRS bills owed no vendor
bills owed just the preferred IEU well you have this residual claim to the you know
financial residue and the eight million bucks you invested went to Jenny Craig [Man with briefcase of 8 million dollars appears]
dieted down to only five million bucks which now come your way via your
residual claim to assets fingers crossed your next investment goes a bit better
but hopefully this one will put a little hair on your chest it happens [Man with hairy chest appears]
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