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European-Style Option |
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Description of European-Style Option. Explanation. |
Definition European-Style Option. Description.
A European-Style Option is an option that can be exercised on its expiration date only.
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. European options are typically valued using the Black-Scholes or Black model formula. ForumCompare with: American-Style Option | Asian Option | Call Option | Put Option | Real Options | Futures Contract |
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End of description European-Style Option. An explanation. |
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