Deferred Payment Option
Definition of '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 explains 'Deferred Payment Option'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 Definitions
Articles Of Interest
-
College Loans: Private Vs. Federal
Not all student loans are the same. Know what you're getting into before signing on the dotted line. -
Options Basics Tutorial
Discover the world of options, from primary concepts to how options work and why you might use them. -
Going Long On Calls
Learn how to buy calls and then sell or exercise them to earn a profit. -
Volatility Index Uncovers Market Bottoms
VIX can gauge when the market has hit bottom - a welcome sign of better things to come. -
Prices Plunging? Buy A Put!
You can make money on a falling stock. Find out how going long on a put can lead to profits. -
Making It Big On Wall Street
Read about some of the most glamorous Wall Street jobs and what it takes to land one. -
Quants: The Rocket Scientists Of Wall Street
Blend math, finance and computer skills to command a high - and well deserved - salary. -
Build A Baby Berkshire
Get a piece of Warren Buffett's profit by using Form 13F to coattail his picks. -
Cash: A Call Option With No Expiration Date
Cash is generally regarded as a drag on investment returns, but sometimes it may be preferable to hold a substantial cash amount instead of investing it in other assets. This is because having ... -
Should You Add A Securities License To Your Qualifications?
Clients love planners who sell securities, but a securities license takes a lot of work. Learn if the stress and study are worth it.
Free Annual Reports