Deferred Payment Option

Deferred Payment Option

An option with all the characteristics of an American vanilla option, with one exception: payment is deferred until the original expiration date.

Notes:

The option can be exercised at any time however, payment is deferred until the original expiration date of the option. These options are considered long term options, with expiration dates at least one year away.

See also: American Option, Asian Option, European Option, Exotic Option, Expiration Date, Option, Vanilla Option