European-Style Option
An option contract that may be exercised only during a specified time period just prior to its expiration.
Investing terms and definitions starting with
Numbers A B C D E F G H I J K L M N O P Q R S T U V W Q Y Z ...
European-style option investment & finance definition
An option that can be exercised only on its expiration date, in contrast to an American option, which can be exercised at any time up to its expiration date.
More from YD ...
European-style options: an option that can be exercised by the buyer only on the contract expiration date.
Exercise: a decision, reserved for the option holder, to request execution of the contract.
European-Style Option
An option contract that can only be exercised on the expiration date.
Excess Equity
Equity in a margin account above the requirement set by Regulation T.
European-style options - Options that may be exercised only on the option's expiration date.
European Union - The group formerly known as the European Community.
European-Style Options
An option contract that may be exercised only during a specified period of time just prior to its expiration.
European-style option: An option that can be exercised only during a specified period of time just prior to its expiration. (See also American-style option.) ...
European-Style Option
Options that can be exercised only on their expiration date.
Ex Dividend
The holder of shares purchased ex dividend is not entitled to an upcoming already-declared dividend, but is entitled to future dividends.
European-style options: Options that may only be exercised on the expiration date. (Most options in the U.S. are American-style options.) ...
A European-style option is one that can only be exercised during a specified period of time prior to its expiration. This period may vary with different classes of index options.
This can happen at any time during the life of an option with American-style options and only at or near expiration for European-style options.
See also European-style option Arbitrage A trading technique that involves the simultaneous purchase and sale of identical assets or of equivalent assets in two different markets with the intent of profiting by the price discrepancy.
A listed option that you can exercise only on the last trading day before the expiration date is called a European-style option whether it trades on a U.S. exchange, a European exchange, or elsewhere in the world.
The American option is an investment opportunity that is somewhat similar to the European-style option, but is characterized by one important difference.
The other type is the European-Style Option which can only be exercised for at a specific time period.
Investing terms and definitions starting with
Numbers A B C D E F G H I J K L M N O P Q R S T U V W Q Y Z ...
From the model, one can deduce the Black-Scholes formula, which gives the price of European-style options. The formula led to a boom in options trading and the creation of the Chicago Board Options Exchange.
In the case of European-style options, the exercise day can only be the expiration day at the end of the maturity. With American-style options, the option holder can exercise at any time during the maturity.
For European-style options this would be the only day on which the option can be exercised.
types of options (calls and puts), there are also different styles of options depending on the product being traded, with different expiration procedures. American-style options can be exercised at any time prior to expiration. European-style options ...
Second, NFA's options brochure only discusses American-style options, which can be exercised at any time before they expire. Many forex options are European-style options, which can be exercisedonlyon or near the expiration date.
European-style option An option which can only be exercised for a short, specified period of time... Euroyen Refers to Japanese yen traded in the Eurocurrency markets. Euroyen bond Eurobond denominated in Japanese yen.
 See also: Style, Exercise, Option, Options, Period
|
