Deferred Payment Option

Deferred Payment Option

An option contract (whether a call or a put) in which the premium is not paid until the expiration date. A deferred payment option is a form of an American option; that is, the option may be exercised at any point until the expiration date. Generally speaking, a deferred payment option is a long-term investment; the expiration date (and hence the premium payment) is usually at least a year after the date the contract is first entered. It is also called a deferred premium option or a Boston option.
References in periodicals archive ?
Our interest-free, deferred payment option allows consumers to rent a car now, but not worry about the bill for three months.
announced the first interest-free deferred payment option ever offered to car renters.
Customers of Conowingo Power Company (COPCO), a subsidiary of PECO Energy, will be included in the deferred payment option.
Early payment of a letter of credit is payment made by the bank for the receiver of funds under the letter of credit (which was opened with a deferred payment option for the buyer) after the letter of credit documents have been checked and accepted, but before the deferral period ends.
Additionally, new customers can make use of the newest six months deferred payment option, taking immediate delivery of their vehicle.
Similar to Ford, Hyundai is also offering a 90-day deferred payment option on all of its models.
In addition to the 120 day deferred payment option, customers will also benefit from five years extended warranty, five years roadside assistance, three years or 45,000km free service and free registration.
In addition to the 120 day deferred payment option, giving customers the chance to buy now and pay later, customers will also benefit from the added bonus of five years extended warranty, five years roadside assistance, three years or 45,000km free service and free registration.
New Volkswagen owners will be offered five years extended warranty, five years roadside assistance, three years or 45,000km free service, a 90-day deferred payment option as well as free registration.
Second, a contract based on buy and sale on a deferred payment option such as mudaraba.
plans to offer a deferred payment option to those planning a European rail vacation this summer.
Also announced was the airline's deferred payment option, 'Fly Now, Pay Later', which enables American Airlines Credit Card customers to have six months without payment and with no interest accruing.