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.
[4] derived the explicit closed-form formula for European vanilla options under the FMLS model.
It includes Plain Vanilla Options, Asian Options, all kinds of Barrier Options, Binary / Digital Options and Look-back Options.
Simple vanilla options: The OTC business across asset classes such as bonds and equities continues to be well received by investors for its efficiency, effectiveness and simple investment rationale.
The ModBod Shakes come in sucralose-sweetened Chocolate and stevia-sweetened Vanilla options. 'The company's Thermogenic Supplement supports increased metabolism and targeted fat burning; it contains bitter orange, green tea extract, green coffee bean and fucoxanthin.
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.
This methodology has effectively allowed companies using the Black-Scholes model in valuing plain vanilla options to assume the midpoint of the vesting term and the contractual term as the expected life for related awards.
Some companies made limited use of vanilla options. Options are a popular technique when the company does not want to commit to a hedge position or is concerned about lack of an off-setting accounting gain/loss.