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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.


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Compare 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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