Deferred Payment Option

Deferred Payment Option 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. 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.

An option with all the characteristics of an American vanilla option, with one exception: payment is deferred until the original expiration date. 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.