Risk glossary

 

Vanilla option

A vanilla option is a simple call or put option with no special features or observation dates. It gives the holder a time-limited right, but not obligation, to buy or sell an instrument at a predetermined price, in exchange for a premium. The premium is based on a number of factors, including the volatility of the underlying, the maturity of the option and how close to the forward price the strike is set.

Click here for articles on options.

  • LinkedIn  
  • Save this article
  • Print this page  

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here