Vanilla option

(redirected from Plain Vanilla Options)

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.
References in periodicals archive ?
It includes Plain Vanilla Options, Asian Options, all kinds of Barrier Options, Binary / Digital Options and Look-back Options.
If selling downside options, the Bank would much rather enter a conservative strategy such as selling EURCHF put spreads, rather than selling 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.
Buying and selling of futures, plain vanilla options, as well as more elaborate instruments such as trigger caps and accumulators for corn and soybean meal.
pricing of plain vanilla options, digital options, barrier options and the less well known exotic options
Trade in plain vanilla options still accounts for the majority of business in the foreign exchange derivatives market.
It removes the hard choice between accuracy and time because the framework that the authors provide reproduces today's market prices of plain vanilla options almost exactly and simultaneously gives a reasonable future evolution for the smile surface.
He will be key in consolidating our efforts to service clients in cash, plain vanilla options and derivative structures in the region," he added.