Exotic Options - Bermudan Options

The Hindu Business Line  Jan 28  Comment 
It is a derivative instrument wherein the holder of the option has the right to exercise his option only on certain pre-defined dates occurring in regular intervals throughout the duration of the...


This page is part of the Wikinvest Guide to Options. Related articles within this guide include:

Bermudan Options are options that offer the holder multiple exercise dates over the option's lifetime. They are in between American and European options (hence the reference to Bermuda) because the holder has the right but not the obligation to exercise the option at a specific time (as with a European option), but there are multiple opportunities to exercise before the option expires (as with an American option.)

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