Mid-Atlantic Option

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.

BREAKING DOWN '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.

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RELATED FAQS
  1. After exercising a put option, can I still hold my option contract in order to sell ...

    Once a put option contract has been exercised, that contract does not exist anymore. A put option grants you the right to ... Read Answer >>
  2. How is a put option exercised?

    A put option is a contract that gives the option holder the right, but not obligation, to sell a set amount of shares (1 ... Read Answer >>
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