Styles of option

Discussion in 'Options' started by osho67, Sep 9, 2003.

  1. What us meant by Amerucan style and European style. What is the style of US options? Any advantage or disadvantage of any of these styles. Thanks for information
  2. vega


    American style options can be exercised at any point until expiration, while European style options can only be excercised on expiration, so the only real difference is the fact that you have the ability to excercise your options before expiration if they are American style options. Hope this helps.

  3. A correlary to vega's point is that, since they can only be assigned at expiration, European-style options are, in my opinion, more suitable to option selling.