European option

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European option

Option that may be exercised only at the expiration date. Related: American option.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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

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.
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 ?
According to Table 2, we can draw an important conclusion as follows: for European-style call options, the pricing error of the EGARCH-Leevy model (other than EGARCH-Leevy-VG, whose pricing error against short-term options is higher) is lower than that of the HN model, indicating that the models in this paper can forecast the prices of European-style options well.
The models introduced in this paper can substantially reduce European-style option pricing errors.
Zhu, "Analytically pricing European-style options under the modified Black-Scholes equation with a spatial-fractional derivative," Quarterly of Applied Mathematics, vol.
At present time Company concentrates on Monte Carlo based methods like Black-Sholes model for European-style options. In the future there will be support for all other computations-intensive methods used in financial engineering.
Options to be listed will include an average price option and underlying calendar swap, as well as American-style and European-style options. The contracts will be listed for electronic trading on CME Globex, open-outcry and over-the-counter clearing on CME ClearPort.
European-style options which are not exercisable until a future date.
European-style option, delivery of the underlying property will take
an in-the-money European-style option, unlike at-the-money or
level, a deep-in-the-money European-style option bears a strong
The Black-Scholes model was developed for European-style options exercisable only at expiration.

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