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:
“You don’t merely give over your creativity to making a film—you give over your life! In theatre, by contrast, you live these two rather strange lives simultaneously; you have no option but to confront the mould on last night’s washing-up.”
—Daniel Day Lewis (b. 1957)
“Hemingway was a prisoner of his style. No one can talk like the characters in Hemingway except the characters in Hemingway. His style in the wildest sense finally killed him.”
—William Burroughs (b. 1914)