this is probly noob question but i will ask anyways, I currently reside in usa and trading options here. However I heard europeans options can only be exercised at the end of contract term not anytime sooner than that, although you can sell. This applicable to options traded in Europian countries? or is it just the naming? One has to live and reside in one of the Europian countries and trade in Europian exchange to trade to trade Europian optoins? Thanks,
It has nothing to do with the country you are in. American options can be exercised everytime, European(-style) options can only be exercised at the end. If you click on an option (e.g. Contract Descriptions) it tells you which style the option is.
Thanks. So it has nothing to do with whethet it is being traded at European continent... This is what I found on the quote of option in my brokerage account "There are two types of exercise style: American exercise and European exercise. American exercise means that an option may be exercised at any time; European exercise means that an option may only be exercised on its expiration day. Many of the cash-based index options have the European exercise feature. All stock options and some index options have the American Exercise feature."