Options Glossary

Glossary: American-Style Option

Last Updated: July 12, 2015


American-Style Option

What Does American-Style Option Mean in Options Trading?

An American-Style Option is a standard option contract which can be exercised by the option holder or option buyer at any time before the expiration date of the contract. Most of the exchange options are American-Style.
Due to the increased flexibility to the buyer and the increased risk to the seller, the value of the option is higher compared to European-Style options. European-Style Options can only be exercised at the expiry date.

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