Fugit Definition

noun
(finance) The optimal date to exercise an American option (a Bermudan option).
Wiktionary

Other Word Forms of Fugit

Noun

Singular:
fugit
Plural:
fugits

Origin of Fugit

  • First introduced by Mark Garman in an article Semper tempus fugit published in 1989 by Risk Publications, this name was designed to represent a quantity used in binomial trees to estimate american options. the latin term "tempus fugit" means "time flies" and Mark Garman suggested to use that word because "time flies especially when you're having fun managing your book of American options"

    From Wiktionary

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