Deferred Payment Option
An option with all the characteristics of an American vanilla option, with one exception: payment is deferred until the original expiration date. Investopedia Says:
The option can be exercised at any time; however, payment is deferred until the original expiration date of the option. These options are considered long term options, with expiration dates at least one year away. Related Terms:
American Option
Asian Option
European Option
Exotic Option
Expiration Date
Option
Vanilla Option |