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Deferred Payment Option |
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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. Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content. |
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