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Investments glossary

Vanilla Option


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Stay away from needle drugs. Richard Nixon is the only dope worth shooting.

— Abbie Hoffman

A vanilla option is a financial instrument that gives the holder the right, but not the obligation, to buy or sell an underlying asset at a predetermined price within a given timeframe. A vanilla option is a call or put option that has no special or unusual features. Such options are standardized if traded on an exchange such as the Chicago Board Options Exchange.

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