Bermudan option
From ACT Wiki
Jump to navigationJump to search
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.
