Perpetual call option formula

A non-standard financial option with no fixed maturity and no exercise limit.

While the life of a standard option can vary from a few days to several years, a perpetual option XPO can be exercised at any time. Perpetual options are considered an American option; European options can be exercised only on the option's maturity date.

Perpetual Option (XPO)

Also referred to as "non-expiring options" or "expirationless options. Perpetual options are viewed as "plain vanilla" options.

In addition, XPOs can be preferable to standard options because they eliminate the expiration risk. Dictionary Term Of The Day.

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Perpetual Options - Application Center

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