Plain vanilla
Encyclopedia
Plain vanilla is an Adjective
meaning really simple or nothing special.
Some Financial instruments like put option
s or call option
s are often described as plain vanilla options. The opposite of plain vanilla options are exotic options
.
Adjective
In grammar, an adjective is a 'describing' word; the main syntactic role of which is to qualify a noun or noun phrase, giving more information about the object signified....
meaning really simple or nothing special.
Some Financial instruments like put option
Put option
A put or put option is a contract between two parties to exchange an asset, the underlying, at a specified price, the strike, by a predetermined date, the expiry or maturity...
s or call option
Call option
A call option, often simply labeled a "call", is a financial contract between two parties, the buyer and the seller of this type of option. The buyer of the call option has the right, but not the obligation to buy an agreed quantity of a particular commodity or financial instrument from the seller...
s are often described as plain vanilla options. The opposite of plain vanilla options are exotic options
Exotic option
In finance, an exotic option is a derivative which has features making it more complex than commonly traded products . These products are usually traded over-the-counter , or are embedded in structured notes....
.