American-Style Option

Description of American-Style Option. Explanation.

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Definition American-Style Option. Description.

An American-Style Option is an option that can be exercised at any time before its expiration date.

An option gives its holder the right to purchase or sell a security during a specific time and price. Option contracts traded on futures exchanges are mainly American-style, whereas those traded over-the-counter are mainly European.

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End of description American-Style Option. An explanation.