What is 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. Read more for examples and further explanation including related video clips and also comments
Example 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.
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