Bermudan-style option: Difference between revisions
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* [[American-style option]] | * [[American-style option]] | ||
* [[European-style option]] | * [[European-style option]] | ||
[[Category:Managing_Risk]] | |||
Revision as of 17:37, 19 August 2014
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.
