American-Style Option

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

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