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  2. Share Prices
  3. Finance Glossary
  4. Terms Beginning With T
  5. Traditional Option

Traditional Option

Definition of 'Traditional Option'

An option available on any security but with an exercise price fixed as the market price on the day the option is bought. All such options expire after three months and cannot be sold to a secondary investor.

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Related Terms

Zero Cost OptionAbandoned OptionReturn on Capital EmployedTraditional Theory of Capital StructureCall OptionIn-the-Money OptionOption PremiumReal OptionAmerican Style OptionCurrency WarrantExpiry Date of an OptionIndex OptionLTOMOut-of-the-Money OptionPutStrike PriceWriter of an OptionAbandonmentAt-The-MoneyAt-The-Money Option

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