American option

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American option

An option that may be exercised at any time up to and including the expiration date. Related: European option

American Option

An option contract that may be exercised at any time on or before the expiration date. For example, if one buys an American call giving him/her the right to buy shares in X expiring on the final Friday in March, the call may be exercised at any time on or before the final Friday in March. The differentiating feature of an American option is the fact that its value varies according to the value of the underlying asset over the life of the contract. This means that a holder may wait for an advantageous price and exercise the option. This contrasts with a European-style option, which may only be exercised on the expiration date.

American option

A put or call option that permits the owner to exercise the option at any time on or before the expiration date.
References in periodicals archive ?
The American style options contract (commodity code: C1) will be listed for the current year plus the next four years, beginning with the January 2009 contract.
Summarizing, for American style options with the stochastic volatility model (2.
The objective of this course is to give you a basic understanding of the pricing principles of both European and American style options on different underlaying assets line bonds, FX rates and interest rate options.

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