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
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

American option

A put or call option that permits the owner to exercise the option at any time on or before the expiration date.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
Calculating American style options under geometric Brownian motion is far from the realistic financial market.
In this paper we give an attempt to this challenging topic by studying an American style option with strangle payoff, which was previously investigated by Chiarella and Ziogas [11] and Moraux [12] for single asset and constant volatility.
American style options are very important in hedging instruments.
are American style options, which can be exercised any time on or before the expiration date.
Table 36-2 presents some hypothetical American style options prices in early July for XYZ Computers, assuming the current market price is $113.
Summarizing, for American style options with the stochastic volatility model (2.6),(2.7), the following LCP needs to be solved,

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