Tuesday 22 May 2012

American & European Style Options


American Style Option

Which allows the owner of option to exercise the right of the contract at any time before the option expires.

European Style Option

Owner of option only exercise the right of contract at the expiry date of the option.

Most options traded all over the world are American Style Options. No matter what style option applied, options trader will sell the options before expiration rather than exercising it. (Read more>>Why Not Exercising the Option)



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