FLEX® OPTIONS
Exchange-traded options that allow the buyer to specify the style (American or European), strike, maturity, and notional principal of an option. This enables hedgers to eliminate the timing mismatch between hedge and underlying position that can occur with standardised exchange-traded products. They also avoid the gamma and vega mismatches which occur: for example, near-the-money options with a long time to run have high vega but little gamma whereas near-the-money options, with little time to run, have the opposite. LIFFE