Bermudan-style option - Financial definition
Financial acronyms
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Concise definition of the term Bermudan-style option
A Bermudan option is an option where the buyer has the right to exercise at a set and always discretely spaced number of times. This is intermediate between a European option - which allows exercise at expiry - and an American option which allows exercise at any time.
Comprehensive definition of the term Bermudan-style option
The name comes from the Bermuda Islands, a British overseas territory, which lies between the United States of America and Europe, but is closer to the first. This is also true for the option exercise style.
Sometimes also referred to as a Mid-Atlantic or Semi-American option.