Exchange Currency

American option

An option which can be exercised at any time between the purchase date and the expiration date. Most options in the U.S. are of this type. This is the opposite of a European-style option, which can only be exercised on the date of expiration. Since an American option provides an investor with a greater degree of flexibility than a European style option, the premium for an American style option is at least equal to or higher than the premium for a European-style option which otherwise has all the same features. also called American-style option.

Related information about American option:
  1. American Option Definition | Investopedia
    An option that can be exercised anytime during its life. American options allow option holders to exercise the option at any time prior to and including its maturity ...
     
  2. Option style - Wikipedia, the free encyclopedia
    An American option on the other hand may be exercised at any time before the ... the American option will be worth at least as much as the European (which it ...
     
  3. An American option can be exercised at any time, whereas a ...
    An American option can be exercised at any time, whereas a European option can only be exercised at the expiration date. This added flexibility of American ...
     
  4. American option
    American option. An American option is an option that can be exercised at a fixed strike price at any time before the expiry date. The value of an American call ...
     
  5. American Options - New York University
    The proptotypical definition of an American option is that of a contract giving ... The characterization of American option valuation as an optimal stopping problem ...
     
  6. What is American option? definition and meaning
    Definition of American option: An option which can be exercised at any time between the purchase date and the expiration date. Most options in the U.S. are of ...
     
  7. Pricing an American Option by Approximating Its Early Exercise ...
    This article proposes to price an American option by ap- proximating its early ... the American option problem is that it can be subjected to various approx- ...
     
  8. American Options - An Undergraduate Introduction to Financial ...
    An American option (a call, for instance) may have a positive payoff even when the corresponding European call has zero payoff. T t. K. S(t). J. Robert Buchanan ...