A deferred payment option which permits the holder to freeze or lock-in the underlying price at which it will be exercised before maturity. And hence, the payoff (intrinsic value) of the exercised option will be only paid out at a scheduled expiration date.
Deferred payment American options are specifically much more of a put-style than a call-style. The cost of holding a put contract is almost identical to that of an otherwise identical European put, but for an additional benefit in terms of market timing possibilities associated naturally with American-style puts.
