conventional option

conventional option definition - business

conventional option

A put or call option contract negotiated independently of the organized option exchanges. Before 1973 and the opening of the Chicago Board Option Exchange, all options originated through private negotiations. The disadvantage of conventional options is their lack of liquidity due to a limited secondary market.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

Comments
Improve this definition.
Do you have more to add? Share your linguistic knowledge or observation.
/Register to save your comments.