Deferred Payment Option

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Deferred Payment Option

An option contract (whether a call or a put) in which the premium is not paid until the expiration date. A deferred payment option is a form of an American option; that is, the option may be exercised at any point until the expiration date. Generally speaking, a deferred payment option is a long-term investment; the expiration date (and hence the premium payment) is usually at least a year after the date the contract is first entered. It is also called a deferred premium option or a Boston option.
References in periodicals archive ?
"We are the only online movie ticketing platform in India to extend deferred payment options to movie-goers to ease their ticket-booking experience on TicketNew.
Brand manager Felix Meranda, said: "Now more than ever, customers can engineer a package for affordable innovation that best suits their needs with low finance interest rates and three-month deferred payment options.
In order to sell more, companies must be prepared to offer deferred payment options to customers, whether they are local or foreign.

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