American style options

American Style Options: An option contract that can be exercised at any time between the date of purchase and the expiration date.
Basis: The difference between spot (cash) prices and the futures contract price.

You'll find two: the American Style Options along with the European Style options. The difference between the two lies on the date when the option could be exercised. In European Style, options can only be exercised after the expiration date.

An option pricing model that takes into consideration the early exercise provision of the American style options.

Expiration Date
The last day on which an option may be exercised for American style options. For European options, this is the only date when the option can be exercised.
Expiration Month
The month when an option or futures contract expires.

Range accrual notes are complex instruments that are valued and adjusted in a similar manner to American style options. They are typically used by large institutions as a hedge of another position.

European Style Option
An option which can only be exercised by the holder at expiry (unlike American style options which can be exercised at any time until expiry).
Related Terms...
Option
Expiry Date
American Style Option ...

An option contract that can only be exercised on the expiration date. (see American Style Options)
Ex-Dividend ...

European style call options are sold on European exchanges, while American style call options are sold in North American exchanges. The difference is quite simple. European options can only be exercised on the expiry day, while American style options ...

See also: American Style Option, Style, Options, Exercise, Option