Derivatives
Bermudan Option
Definition
What is Bermudan Option?
An option exercisable on specified dates before expiration.
Example in practice
How This Looks in Practice
The holder may exercise on each quarterly date.
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Related Terms
Derivatives
Derivative
A contract whose value depends on an underlying asset, rate, index, or event.
DerivativesUnderlying Asset
The asset, rate, index, or reference on which a derivative's value is based.
DerivativesNotional Amount
The reference amount used to calculate derivative payments, which may exceed the cash initially exchanged.
Derivatives StrategiesCovered Call
A strategy that owns the underlying asset and sells call options against it.