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Vanilla Option |
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Vanilla option An option with standard features like a fixed strike price, expiration date and a single underlying asset. The option is effective at the current date and when exercised, its payoff equals the difference between the value of the underlying asset and the strike price. It is also known whether the option is a call or a put at the time the option is sold. Also see Exotic option. Vanilla Option An option contract with no special characteristics. It is either a call or a put, and has a standard expiry date and strike price. The contract contains no unusual provisions. It is also called a plain vanilla option. See also: Exotic 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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