Deferred Payment Option(redirected from Deferred Premium Options)
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.