Plain Vanilla


Plain Vanilla
The most basic or standard version of a financial instrument, usually options, bonds, futures and swaps. Plain vanilla is the opposite of an exotic instrument, which alters the components of a traditional financial instrument, resulting in a more complex security.

For example, a plain vanilla option is the standard type of option, one with a simple expiration date and strike price and no additional features. With an exotic option, such as a knock-in option, an additional contingency is added so that the option only becomes active once the underlying stock hits a set price point.


Investment dictionary. . 2012.

Look at other dictionaries:

  • plain-vanilla — ˈ ̷ ̷  ̷ ̷ ˈ ̷ ̷  ̷ ̷ adjective : lacking in special features or qualities : basic * * * /playn veuh nil euh/, adj. Informal. having no embellishments, extra equipment, elaborate packaging, etc.; plain; simple; down to earth: I want a plain… …   Useful english dictionary

  • plain-vanilla — /playn veuh nil euh/, adj. Informal. having no embellishments, extra equipment, elaborate packaging, etc.; plain; simple; down to earth: I want a plain vanilla car without a lot of chrome trim. [in allusion to vanilla ice cream, taken to be the… …   Universalium

  • plain vanilla —  Standard, ordinary. A product with few amenities is called a vanilla model. See also STRIPPEDDOWN.  ► “Many corporations, in fact, have stopped discussion of their risk management practices with outsiders, since they almost inevitably involve… …   American business jargon

  • plain-vanilla —  Ordinary, without any extras.  ► “Ultimately he was assigned to new product development helping KPMG escape its stigma as a plain vanilla financial statements auditor.” (Wall Street Journal, Jan. 19, 1996, p. B1) …   American business jargon

  • Plain Vanilla — Vanilla bezeichnet: eine Pflanzengattung aus der Familie der Orchideen, siehe Vanille (Gattung) Sexpraktiken außerhalb des BDSM, siehe Vanilla (Sex) …   Deutsch Wikipedia

  • plain-vanilla — plain′ vanil′la adj. cvb inf having no embellishments; simple; basic • Etymology: alluding to vanilla ice cream, taken to be the most basic flavor …   From formal English to slang

  • plain-vanilla — adjective Date: 1975 lacking special features or qualities ; basic …   New Collegiate Dictionary

  • plain vanilla — alltäglich; publik; geläufig; öffentlich; vertraut; allgemein bekannt; gewohnt …   Universal-Lexikon

  • Plain vanilla — A term that refers to a relatively simple derivative financial instrument, usually a swap or other derivative that is issued with standard features. The New York Times Financial Glossary * * *    Standard financial or derivative instruments… …   Financial and business terms

  • plain vanilla — Simple; not complex. Sometimes used to differentiate pass through MBS pools from CMO structures. More often used to mean sequential pay REMICs, the simplest REMIC structure. American Banker Glossary A term that refers to a relatively simple… …   Financial and business terms


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