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 ?
Metzzo currently trades as a European-style restaurant, yet would be suitable for a variety of cuisines.
Also funded is a $10 million European-style traffic roundabout, which is planned to consolidate five closely spaced intersections into one and eliminate the 90-degree curve from Palmdale Boulevard onto 47th Street East.
Bulthaup European-style kitchens boast larch wood cabinetry and stainless-steel hardware complemented by Pietra Cardosa stone countertops and top-of-the-line Wolf, Sub-Zero and Miele appliances.
tax code is very unlikely to scrap the income tax system in favor of a national sales tax or a European-style value-added tax, the panel's vice chairman told the American Council of Life Insurers.
My father's idea was to offer European-style ambiance and serve good food in a Caribbean location," Roydon offers.
A Belgian home builder could be manufacturing upscale European-style homes and building components in North Bay by mid-2005.
Tucked into a quiet residential neighborhood near the airport and two kilometers from downtown San Jose, the Barcelo San Jose Palacio offers impeccable European-style service.
Wilson ardently sought the creation of a European-style central bank, and the Aldrich plan fell short.
Research in the western Indian Ocean suggests that reefs there were similarly affected by the advent of European-style agriculture in Kenya in the early 20th century, Cole adds.
Although Vincent has made no drastic changes in Hubbard Street, this season's programs had more than a hint of European-style contemporary dance.
All modern option pricing models say the present value of a so-called European-style option--one exercisable only at expiration--is the sum of the present values of each of the two hypothetical instruments in the equivalent portfolio.

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