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Mid-Atlantic Option
(redirected from Bermudan Options)

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Mid-Atlantic Option
An option contract that may only be exercised on certain days. For example, if one buys a Mid-Atlantic call giving him/her the right to buy shares in X expiring on the final Friday in March, the call may only be exercised on certain days, usually one day per month. The term "Mid-Atlantic" comes from the fact that it combines features of a European option, which may only be exercised on the expiration date, and an American option, which may be exercised at any time. A Mid-Atlantic option is also called a Bermudan option.
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