Task: Class Definition Understanding (ontology: Business_Finance/Financial_Industry_Business_Ontology)

Which of the following definitions best describes 'forward start option'?

A. exotic option that is fully specified with respect to a set expiry date, underlying asset and other parameters, purchased and paid for on initiation, but that becomes active at a set activation date with a strike price determined at the time of activation
B. exotic option based on multiple underlying securities
C. exotic option that allows its holder (buyer) to exercise the right to buy (call) or sell (put) specified assets at a fixed price whereby the buyer does not have to decide whether the contract will be a put or a call until an agreed future date, prior to expiration
D. exotic option linked to the performances of two or more underlying assets

Answer: exotic option that is fully specified with respect to a set expiry date, underlying asset and other parameters, purchased and paid for on initiation, but that becomes active at a set activation date with a strike price determined at the time of activation