Bermudan option: Difference between revisions
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An option which can be exercised only on pre-specified dates up to its maturity. | 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. | So Bermudan options’ characteristics are part-way between European-style and American-style options in respect of their exercise dates. | ||
Revision as of 15:06, 2 November 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 as a 'Bermudan-style' option.
