deferred payment option


An option contract wherein the holder may choose to exercise the option before its expiration date, however, the settlement will be deferred until the expiration date of the option. For example, a deferred payment option has an expiration date of April 30. The holder may exercise the option on March 31 but he will be paid on the 30th of April. Also called deferred payout option.
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deferred payment method deferred premium option