Arcade › Glossary › Derivatives & Options › Bermudan Option Derivatives & Options Bermudan Option An option you can exercise on several set dates, not just at expiry (European) or any time (American) — the halfway house, named for the island between the two. Swaptions are often Bermudan. Want more than a definition? Learn it in Quant Quest → Related terms American Option European Option Swaption ← Previous Basket Option Next → Binary Option ← All Derivatives & Options terms