Bermudan-style option

An option which can be exercised only on pre-specified dates up to its maturity.

So Bermudan options’ characteristics are part-way between European-style and American-style options in respect of their exercise dates.

The term derives from Bermuda's geographical location 'part-way' between Europe and America.

Also known more simply as a 'Bermudan option'.

See also

• American-style option
• European-style option