A standardized OPTION contract traded on an EXCHANGE that allows buyers and sellers to select key contract features such as STRIKE PRICE, EXERCISE style, and maturity date. Though not as bespoke as an OVERTHECOUNTER (OTC) OPTION, the flex structure provides a degree of customization that allows it to compete with certain OTC contracts.

More On This Topic

Link to This Definition
Did you find this definition of FLEXIBLE EXCHANGE (FLEX) OPTION helpful? You can share it by copying the code below and adding it to your blog or web page.
Written and fact checked by The Law Dictionary