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American-style option

An Option which can be exercised at any time between the Purchase date and the Expiration date. Most options in the U.S. are of this Type. This is the opposite of a European-style option, which can only be exercised on the date of expiration. Since an American-style option provides an investor with a greater degree of flexibility than a European Style option, the premium for an American style Option is at least equal to or higher than the premium for a European-style option which otherwise has all the same features. also called American option.

Related Terms: 16 American option, American-style option, Call, Euro, EU, European-style option, Exercise, Expiration date, High, Inc., Option, Purchase, PPO, Ratio, Style, Type
Other Related Pages: Category: Options Starting With: A
Semi Related Terms: 568 CLICK HERE TO VIEW