Options Glossary

Glossary: European Exercise

Last Updated: July 12, 2015


European Exercise

What Does European Exercise Mean in Options Trading?

The style of an option that limits the exercise to its expiry only and can not be exercised any other time during the life cycle of an option. There is advantage to the writer of option in this type of feature as the writer can be sure that there would not be any early assignment of underlying securities. This style is not very common in American options.

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