A Primer on Everlasting Options

Quick Take

• Everlasting options are a new financial primitive that attempt to expand on the success of perpetual swaps to create new financial instruments. 
• Perpetual swaps have become extremely popular since their inception, largely due to their simplicity and capital efficiency. 
• Everlasting options apply a similar framework to options markets and have the potential to improve LP risk profiles, execution costs, and liquidity fragmentation; but significant research & development is needed for these products to reach the market.

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