## Vanilla Option

**is an abstract direct subtype of Option with functions Vanilla Option Functions, direct subtypes Vanilla Option subtypes and keys Vanilla Option keys that represents a special type of Option, where the underlying contract has the form of a single - not portfolio based - deliverable asset.**

*Vanilla Option*Thereby the option holder has the right - but not the obligation - to buy (if a "call option") or to sell (if a "put option") in the future a single share of a specified underlying tradable at some preagreed price called "strike".

In mathematical terms, holding such an option on some underlying S is a means of getting non-linear exposure on that underlying.

In particular, letting

**be the strike and**

*K***equal 1 if call and -1 if put, the option's payoff at exercise date will be**

*ε***, versus just**

*max(ε(S-K), 0)***, were one to hold just the underlying rather than the option.**

*S*The pricing methodology is specified in Model[Vanilla Option]