conventional option

Conventional option

An option contract arranged on the trading floor and traded regularly. The opposite of exotic option.

Conventional Option

An American option or European option that is not traded on an exchange. That is, a conventional option has no special features that would exclude it from an exchange but, nonetheless, is privately negotiated and agreed between the parties. A conventional option is illiquid because there is little secondary market for it. It has become a rare investment vehicle, as trading options on exchanges have become more common.

conventional option

A put or call option contract negotiated independently of the organized option exchanges. Before 1973 and the opening of the Chicago Board Option Exchange, all options originated through private negotiations. The disadvantage of conventional options is their lack of liquidity due to a limited secondary market. See also FLEX option.
Mentioned in ?
References in periodicals archive ?
To cater to the hotel's business clientele, a second, modern style provides a more conventional option, with muted tones.
If consumers perceive the organic price to be high they are going to react very negatively to the fact that they cannot find a conventional option anymore; they will feel financially penalized for it.
As we show below, a majority of senators using the conventional option (1) cannot be filibustered; (2) can act on any day the Senate is in session (not just at the beginning of a new Congress); and (3) does not need to invoke the Constitution.
Hill was considered a more conventional option, the board's president said.
He adds: "Beforehand there was a debate over whether Salsabil should take on the colts in the Derby or take the conventional option of the Oaks, but I stayed out of it.
He's the more conventional option at quarterback, so Oregon defensive ends Nick Reed and Will Tukuafu can put their focus on pass rush.
As mentioned above, conventional option premia should not be counted as income because they correspond to the issuer's contingent liabilities in the future.
clients, the more conventional option would have been to decant to the suburbs, yet in this affordable and adaptable house, they can remain part of the life of the city.
Apart from a conventional option scheme, where options may be granted after each set of results, there is an executive scheme where options worth up to two years' salary could be granted at the outset "in the exceptional circumstances of the establishment of the Carillion Group".
Barton's owner Stan Clarke said yesterday that although his rapidly-improving hurdler is entered in the Stayers', he is far more likely to take the conventional option and contest the Royal & SunAlliance Hurdle, for which he is 5-2 favourite with Ladbrokes.
Friends said the couple wanted to give Romeo - born by Caesarean section at London's private Portland Hospital on September 1 - a conventional option.
While the more conventional option during the recent economic downturn would have been to `hide under our desks' and hope for the best, we stayed true to our strategy of continuing to invest in our products," said Murtaza Ghadyali, Vice President of Product Management for Reflexis.

Full browser ?