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 ?
59 for 2 Gu are kings of choccie puds so this vanilla option makes a nice change.
Even if the required options are traded, there are vanilla option bid-ask spreads that need to be factored in.
First, the models under consideration are calibrated to the observed cross-sectional vanilla option prices and the resulting models are used to set up replicating portfolios for other options at the same time.
As with the vanilla option, the premium would be lost if the underlying was above the upper strike at expiration.
The relaunch is intended to move the brand away from its Continental association by ditching its Italian lemon & strawberry flavour and its French vanilla option, replacing them with a dark chocolate flake and a strawberry variant.
Udi's fans were using the brand's Double Chocolate muffin as a cupcake base, so the Udi's team created a similar vanilla option.
With the firm's new FX options electronic trading platform, it can even quickly and effectively execute vanilla option trading strategies.
A Heinz spokesman claimed its new GM-free recipes -- based on US market leader's Westsoy's soya formulations -- taste creamier than competitors' offers, particularly the vanilla option made with organic brown rice syrup.
He was charged with building BofA's Institutional Equity Derivative Sales effort in London and managed a team that was responsible for dealing in vanilla option and synthetic volatility products across Asian, European and US markets.
Vanilla Option Replication of ALM Shortfall Risks for Life and Pension Liabilities Rahul Karkun, Juliana Kim Moustakas and Idriss Amor
Provide a premium vanilla option for the implementation of your solutions
Nick Moore joins as Global Head of USD Vanilla Option Trading from the BNP Paribas London office, where he most recently has been running EUR Vanilla Option Trading.