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Vanilla Option
(redirected from Plain 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.


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These types of options are different from plain vanilla options.
As implied volatilities are down significantly (45% for the RTS Index) and have almost reached their pre-crisis levels, plain vanilla options now look less expensive than they did two-three months ago.
In the case of USD, the Company uses forwards, knock out forwards, plain vanilla options and tarns.
 
 
 
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