Mid-Atlantic Option

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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. Option

    A financial derivative that represents a contract sold by one ...
  2. European Option

    An option that can only be exercised at the end of its life, ...
  3. Balloon Option

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

    An option that can be exercised anytime during its life. American ...
  5. Writer

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

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