Vanilla Option

Dictionary Says

Definition of 'Vanilla Option'

A financial instrument that gives the holder the right, but not the obligation, to buy or sell an underlying asset at a predetermined price, within a given time frame. A vanilla option is a normal call or put option that has standardized terms and no special or unusual features. It is generally traded on an exchange such as the Chicago Board Options Exchange.

Investopedia Says

Investopedia explains 'Vanilla Option'

Individual and institutional investors can take advantage of the versatility of options to design an investment that best meets their need to hedge or speculate on the price movement of an asset. If a vanilla option is not the right fit, they can explore exotic options such as barrier options, Asian options and digital options. Exotic options have more complex features and are generally traded over the counter.

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'Vanilla Option'

  • What's the difference between a regular option and an exotic ...

    http://www.investopedia.com/ask/answers/05/063005.asp
    ... This is unlike a regular option because the holder of a vanilla option can buy
    the underlying at the strike price at any time after inception. ...
  • How To Use FX Options In Forex Trading

    http://www.investopedia.com/articles/forex/11/forex-options-basics.asp
    ... pips. The Debit Spread Trade Aside from trading a plain vanilla option,
    an FX trader can also create a spread trade. Preferred by ...
  • Options Basics: Types Of Options | Investopedia

    http://www.investopedia.com/university/options/option3.asp
    Plain vanilla? Exotic? Learn about the different option flavors and how
    they can be used. Sign In• Register• Free Annual Reports ...
  • Selecting A Hot SPOT Option

    http://www.investopedia.com/articles/optioninvestor/08/spot-options-investing.asp
    ... This type of arrangement is often called a "binary option" by many brokers because ...
    Binary options are vanilla put and call options whose value is set by the ...
  • Options Greeks: Introduction | Investopedia

    http://www.investopedia.com/university/option-greeks/
    ... you'll typically find a calendar spread as an off-the-shelf, plain vanilla approach ...
    If you sell an at-the-money front month option and buy an at-the-money back ...
  • Options Greeks: Introduction | Investopedia

    http://www.investopedia.com/university/option-greeks/default.asp
    ... you'll typically find a calendar spread as an off-the-shelf, plain vanilla approach ...
    If you sell an at-the-money front month option and buy an at-the-money back ...
  • Options Greeks: Introduction | Investopedia

    http://www.investopedia.com/university/option-greeks
    ... you'll typically find a calendar spread as an off-the-shelf, plain vanilla approach ...
    If you sell an at-the-money front month option and buy an at-the-money back ...
  • An Introduction To Swaps

    http://www.investopedia.com/articles/optioninvestor/07/swaps.asp
    ... 4. Use a Swaption: A swaption is an option on a swap. ... This introduction to the concept
    of plain vanilla swaps and currency swaps should be regarded as the ...
  • Advanced Bond Concepts: Duration | Investopedia

    http://www.investopedia.com/university/advancedbond/advancedbond5.asp
    ... Duration of a Vanilla or Straight Bond Consider a vanilla bond that pays coupons ...
    prevailing interest rates change; this is also the case for option-free fixed ...
  • Using Options Tools To Trade Foreign-Exchange Spot

    http://www.investopedia.com/articles/optioninvestor/05/022305.asp
    ... a certain level is roughly equivalent to two times the delta of an option struck
    at ... is long gamma, meaning he or she has bought some standard vanilla options. ...

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