An option that can be exercised on discrete dates before expiration, such as the first of every month. This option is similar to an Atlantic option, i.e., it is also a cross between an American option and a European option. Pricing of Bermudan option will be, as with an Atlantic option, higher than that of an identical European option but lower than that of an identical American option.

The Bermudan option is also sometimes called a mid-Atlantic option, an Icelandic option, a quasi-American option, etc.