Bermudan option: Difference between revisions
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imported>Doug Williamson (Create the page. Source: Bermudan-style option page.) |
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Revision as of 13:29, 26 October 2016
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'.
