The Law Dictionary

Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.

DEFERRED PAYMENT AMERICAN OPTION Definition & Legal Meaning

Definition & Citations:

An OVERTHECOUNTER AMERICAN OPTION that permits the seller to utilize option proceeds from the time the buyer EXERCISES the contract, until the original maturity of the option. In exchange for relinquishing use of proceeds until maturity the buyer pays the seller a lower PREMIUM.

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