Vanilla option

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 ?
59 for 2 Gu are kings of choccie puds so this vanilla option makes a nice change.
Even if the required options are traded, there are vanilla option bid-ask spreads that need to be factored in.
A Binary Touch Option differs from a plain Vanilla Option in that the potential gains and losses of a Binary Touch Option position is known upfront, thus greatly simplifying the transaction.
First, the models under consideration are calibrated to the observed cross-sectional vanilla option prices and the resulting models are used to set up replicating portfolios for other options at the same time.
As with the vanilla option, the premium would be lost if the underlying was above the upper strike at expiration.
With the firm's new FX options electronic trading platform, it can even quickly and effectively execute vanilla option trading strategies.
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.