Among the various financial solutions available on the internet, I opted for the Silverline Ginmogen. The company offers me a world of options suitable to my requirements and financial needs. One such option has been the Vanilla Option.
The Vanilla Option
The Vanilla Option has been the simplest kind of option available that provided me with the right, but not with an obligation for either purchasing (Call) or selling (Put) options. These options were that of the pre-defined thoughtful amount of a fundamental asset required at a previously determined price known as Strike Price. The option came with a fixed expiry date. The payout of a vanilla option was the major difference between the strike and the original price of the asset at expiration. I was given two types of Vanilla Options, presently available in the market. It has been actively traded in the market that would be the European Style and American Style Vanilla Options.
The primary difference that I found out in these two styles of Vanilla Option has been the American Style allowed contract that I could exercise at any time between the actual date of purchase and the date of expiration. On the other hand, the European Style enabled me a contract that could only be exercised after expiration.
In addition, the Vanilla Options offered me adequate protection in event of worst rate exchange. This implied that I was allowed to hedge my currency exposure along with given protection against unfavourable currency movements that would occur between my entering the Vanilla Option and the Expiration Date. Furthermore, I was also given an option to take part in any favourable currency movements that could exist on the Expiration Date.
Benefits of Vanilla Option
Vanilla Option provided me adequate protection against unpleasant movements in rate of exchange during the time of the option. Vanilla Options have been flexible. As a result, the Expiry Date, Strike Rate and amount could be tailored to my requirements. The attached table would be helpful to your cause.