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 ?
Olson referred to the limitations of American options that lie in geography and history, and was of the view that 'the administration's approach is unlikely to work, as Pakistan has greater leverage over us than many imagine.
The committee has limited the selection to European and South American options, the names will be presented to the board at its next meeting.
In [11], they studied predictor-corrector finite difference methods for pricing American options under the FMLS model which is a kind of space-fractional derivative model.
My article about economic integration and American options for Russia's aggressive moves in Ukraine brought reactions from a Worcester entrepreneur with friends in Russia as well as from a Silicon Valley venture capitalist.
Recent developments in the valuation of complex American options has allowed progress in the solution of many interesting real option problems.
Among the topics are probabilistic models of diffusion processes, exotic and American options pricing theory, hitting times for diffusion processes and stochastic models in insurance, Levy processes, and Monte Carlo semi-Markov simulation methods.
Savi's in-store prepared food always includes a variety of Indian, Chinese and American options.
How DO YOU SEE AMERICAN OPTIONS REGARDING IRAN; IS PREEMPTION BECOMING THE "LEAST WORST" OPTION?
Both put and call American options become more valuable as time for expiration increases.
Roy's Country Kitchen's breakfast menu offers authentic American options such as biscuits and gravy, hash browns, steak and eggs, and a "country style omelet", which contains spinach, corn, cheese, peppers, sausage, and hash browns.
To the best of our knowledge, IMEX-PC methods have not been used to price financing options, except in [37] where a second-order IMEX-PC scheme is used to price American options.
Thus, one of Bader's first initiatives, in cooperation with Secretary Clinton, was to reverse the Bush administration's refusal to adhere to an ASEAN treaty of amity; they argued, to a skeptical bureaucracy, that the treaty would not limit American options in Asia.

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