Bermudan option: Difference between revisions
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* [[American option]] | * [[American option]] | ||
* [[European option]] | * [[European option]] | ||
[[Category:Financial_products_and_markets]] | |||
Latest revision as of 14:30, 8 October 2020
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.
