American-style option

Financial News Glossary: American-style option

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American-style option

A listed option that you can exercise at any point between the day you purchase it and its expiration date is called an American-style option. All equity options are American style, no matter where the exchange on which they trade is located.

In contrast, you can exercise European-style options only on the last trading day before the expiration date, not before. Index options listed on various US exchanges may be either American- or European-style options.

Financial News: american-style-option

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Continuing the discussion on this important options issue.
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There's more leeway than you might expect.
10/8/04 1:49PM
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This decision should serve as a wake-up call for the Chicago Board of Options Exchange.
8/23/04 8:33AM
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