European option

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European option

Option that may be exercised only at the expiration date. Related: American option.

European Option

An option contract that may only be exercised on the expiration date. For example, if one buy a European call giving him/her the right to buy shares in X expiring on the final Friday in March, the call may only be exercised on the final Friday in March. The implication of a European option is the fact that its value is entirely dependent on the value of the underlying asset at the end of the contract. A holder may not wait for an advantageous price and exercise the option. This contrasts with an American option, which may be exercised at any time prior to expiry.

European option

An option that can be exercised only on its expiration date, in contrast to the option available in the United States whereby the owner may exercise any time up to and including the expiration date.
References in periodicals archive ?
However, European options are also being considered and a final decision will be made on a site that makes both financial and business sense.
Coleman, Li, and Patron (2007) work with a Merton jump-diffusion process and with stochastic volatility models, and compare hedging portfolios based on the underlying asset with hedging portfolios based on standard European options.
Also in 1978, the Amsterdam Stock Exchange opened the European Options Exchange (EOE).
While in the OTC segment only European options may be permitted, both American and European structures may be permitted on Exchanges.
In this section, we develop a similar control variate method for the CAM model and present numerical results for European options with MC and RQMC implementations.
Most of the studies on market efficiency are based on developed markets like, US options and futures market and European options markets, which are efficiently traded (Merton 1973; Black and Scholes 1972; Klemkosky and Resnick 1980; Evnine and Rudd 1985; Kamara and Miller 1995; Ackert and Tian 2000, 2001; Puttonen 1993; Chesney et al, 1995, Berg et al, 1996; Cavallo and Mammola 2000, and Brunetti and Torricelli 2003; Mittnik and Rieken, 2000a,b; Capelle-Blancard and Chaudhury 2001).
Jackwerth and Rubinstein (1996) estimated riskneutral density for the S&P 500 index based on European options.
In the UAE, the Evora includes several European options as standard specification.
The Evora sold here comes with several European options as standard, including the power-fold door mirrors and reversing camera.
On the value of European options on a stock paying a discrete dividend, Journal of Modelling in Management 4(3): 235-248.
Desserts offer up both Asian and European options from a fruit platter to a creme brulee, although after the delicious savoury morsels we didn't have anywhere to put dessert so opted out of ordering any.
43] obtained a fourth-order accurate solution for European options using the grid stretching transformation [52] in combination with the fourth-order spatial discretisation based on a five-point stencil and the fourth-order backward differencing formula (BDF4) for time discretisation.

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