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 ?
The combination of lower prices, extended payment plans and entry into developing areas has forced investors to take opportunistic bets in the off-plan market compared to the plain vanilla options in the ready space," says Hussain Alladin, head of IR and research at Global Capital Partners.
Deribit is a Bitcoin-only derivatives exchange for vanilla options and futures trading.
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.
Ladder options can be valued as combinations of barrier options and vanilla options (De Weert, 2008).
They will be tradable from Saxo Bank's award winning FX Options Board, where clients are already able to trade regular FX Vanilla Options.
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.
Vanilla options give companies the right, but not the obligation, to transact at a predetermined rate at a date in the future.
Some companies made limited use of vanilla options.