Financial

Bermudan option

Bermudan option

An option that can be exercised at a set number of times (unlike European options, which can be exercised only at the expiration date and American options, which can be exercised any time).
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Mid-Atlantic Option

An option contract that may only be exercised on certain days. For example, if one buys a Mid-Atlantic call giving him/her the right to buy shares in X expiring on the final Friday in March, the call may only be exercised on certain days, usually one day per month. The term "Mid-Atlantic" comes from the fact that it combines features of a European option, which may only be exercised on the expiration date, and an American option, which may be exercised at any time. A Mid-Atlantic option is also called a Bermudan option.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
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