American option

American option
An option that may be exercised at any time up to and including the expiration date. Related: European option
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American option or American-style option
An option that the holder can exercise any time prior to and including the expiration date.
See European option, Bermuda option and Asian option. American Banker Glossary
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An option that may be exercised at any time up to and including the expiration date. Related: European option
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An option which may be exercised at any time prior to expiration. Exchange Handbook Glossary
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An option which is exercisable at any time during its life. LIFFE

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American option American option ➔ option

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   An option which can be exercised at any time during the life of the contract, up to and including the expiry date, in contrast to European options which can be exercised only on the expiry date. A variation, called the 'semi-American', is where options can be exercised on only a set number of dates before expiry.

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American option UK US noun [C] (also American-style option)
► FINANCE an option (= right to buy in the future at a particular price) to buy particular shares at any time before their end date: »

Adjustments to option prices as a result of early exercise of American options are worked into the calculations at the required point in time.

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an American-style option on the Major Market Index (MMI) of US blue chip stocks

→ Compare ASIAN OPTION(Cf. ↑Asian option), EUROPEAN OPTION(Cf. ↑European option)

Financial and business terms. 2012.

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Look at other dictionaries:

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  • American-style option — An option contract that can be exercised at any time between the date of purchase and the expiration date. Most exchange traded options are American style. The New York Times Financial Glossary American option or American style option An option… …   Financial and business terms

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