E minis FOP euro or American ?

Discussion in 'Options' started by polee2000, Jan 19, 2007.

  1. is emini FOP American or European.
    thank you
     
  2. MTE

    MTE

    American.
     
  3. thank you
     

  4. MTE

    Why American?

    I trade options on FTSE futures-mostly credit spreads. As exercise can not happen till last day I get enough opportunity to roll it forward or close at a more favourable price. I mostly trade put credit spreads.

    I would like to understand your viewpoint. Thanks
     
  5. MTE

    MTE

    It was not an opinion. The OP asked what style are futures options on the e-minis (S&P 500, Russell, Nasdaq).

    Was I correct in my assumption, polee2000?
     
  6. Sorry I misunderstand but any way I would request your comments about american or european. -which is better. Thanks
     
  7. MTE

    MTE

    You cannot say that one is better than the other, each has its pros and cons. For cash-settled indices it is definitely better to have European as you do not have a risk of early exercise and thus no risk of suddenly finding yourself in an unhedged unlimited risk position.
     
  8. omcate

    omcate

    CME E-mini S&P 500 End Of Month future options use European-style exercise rules.


    The other CME E-mini future options are American style.
     
  9. the reason i asked was that i couldn't find any information on CME.com
    with the IB's API what is the best way to compute Delta (rough approximation is fine)
    i usally hold my naked position into expiration