Mid-Atlantic Option

AAA

DEFINITION of 'Mid-Atlantic Option'

An option that can be exercised at different times during the life of the option. The various times set for exercise are written within the option and allow for flexibility for both the writer and holder of the option.

INVESTOPEDIA EXPLAINS 'Mid-Atlantic Option'

The Mid-Atlantic option is named as such because its exercise dates are more flexible than European options and less flexible than American options. Thus, it is in the middle, just like the Atlantic Ocean is between Europe and America. Mid-Atlantic options are also referred to as Bermuda, Quasi American, or Semi-American options.

RELATED TERMS
  1. Balloon Option

    An option contract where the strike price increases significantly ...
  2. American Option

    An option that can be exercised anytime during its life. American ...
  3. European Option

    An option that can only be exercised at the end of its life, ...
  4. Writer

    The seller of an option who collects the premium payment from ...
  5. Bermuda Option

    A type of exotic option that can be exercised only on predetermined ...
  6. Option

    A financial derivative that represents a contract sold by one ...
Related Articles
  1. Options Basics Tutorial
    Options & Futures

    Options Basics Tutorial

  2. What do all of the letters in a stock ...
    Options & Futures

    What do all of the letters in a stock ...

  3. Stock Safety: Top 3 Ways to Limit Your ...
    Options & Futures

    Stock Safety: Top 3 Ways to Limit Your ...

  4. Applying Binary Options To Equity Markets
    Options & Futures

    Applying Binary Options To Equity Markets

Hot Definitions
  1. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  2. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  3. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  4. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  5. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
  6. Call Risk

    The risk, faced by a holder of a callable bond, that a bond issuer will take advantage of the callable bond feature and redeem ...
Trading Center