European-Style Option

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Description of European-Style Option. Explanation.


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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.

European-Style Options Forum
  Financial Economics: Option Value Example
A share of ARB stock sells for 75% with sd 20% p.a. Risk free rate 9% and stock pays 2 dividends:
1) $2 dividend prior to options expiration date (91days from now) and
2) $2 dividend 182 days from now.
A. Find Black-Scholes value for E...

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European-style Options


European-style Options


European-style Options


European-style Options

Compare with: American-Style Option  |  Asian Option  |  Call Option  |  Put Option  |  Real Options  |  Futures Contract

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