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.
References in periodicals archive ?
It includes Plain Vanilla Options, Asian Options, all kinds of Barrier Options, Binary / Digital Options and Look-back Options.
With the current market uncertainties, it is timely to look at vanilla options as basic building blocks to tailor the risk vs.
The ModBod Shakes come in sucralose-sweetened Chocolate and stevia-sweetened Vanilla options.
Saxo Bank offers Forex Vanilla Options for currency crosses including Gold and Silver, and Forex Binary Touch Options on six of the most traded currency crosses.
Ladder options can be valued as combinations of barrier options and vanilla options (De Weert, 2008).
Moreover, model specification is relatively less important when vanilla options are concerned, since they are actively traded in the market and a great deal of information on the value of these options is readily available.
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.
Some companies made limited use of vanilla options.
The book then guides the reader into the pricing of vanilla options in continuous time, i.
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.
com)-- The commodity derivatives such as swaps, forwards and vanilla options can now be made available through the firm's valuation service.