What Is a Bermuda Option, and Where Does It Fit between the Two Styles? ▴ Learn

What Is a Bermuda Option, and Where Does It Fit between the Two Styles?

A Bermuda option is a hybrid derivative that can be exercised only on specified dates between the purchase date and the expiration date, typically on monthly anniversaries. It is less flexible than an American option but more flexible than a European option, making it a middle ground between the two standard styles.

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