RT Journal Article SR Electronic T1 The Analytics of Reset Options JF The Journal of Derivatives FD Institutional Investor Journals SP 59 OP 71 DO 10.3905/jod.2000.319114 VO 8 IS 1 A1 Wai-Yan Cheng A1 Shuguang Zhang YR 2000 UL https://pm-research.com/content/8/1/59.abstract AB Optionholders like them to be in the money at expiration. One way to make that more likely is to reset the strike price periodically over the option's lifetime, to bring out-of-the-money options back to being at the money. This is often done with executive stock options, for example, and there are also traded securities with this feature. This article derives valuation relationships and hedging parameters for such reset options and compares them with closely related instruments, such as discretely monitored lookback options.