Option Style
In finance, the style or family of an option is a general term denoting the class into which the option falls, usually defined by the dates on which the option may be exercised. The vast majority of options are either European or American (style) options. These options—as well as others where the payoff is calculated similarly—are referred to as "vanilla options". Options where the payoff is calculated differently are categorized as "exotic options". Exotic options can pose challenging problems in valuation and hedging.
Read more about Option Style: American and European Options, Non-vanilla Exercise Rights, "Exotic" Options With Standard Exercise Styles, Non-vanilla Path Dependent "exotic" Options, Related
Famous quotes containing the words option and/or style:
“A self-respecting nation is ready for anything, including war, except for a renunciation of its option to make war.”
—Simone Weil (1909–1943)
“It is the style of idealism to console itself for the loss of something old with the ability to gape at something new.”
—Karl Kraus (1874–1936)