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American Option

In Capital Market in India, An American option is a put or call that can be exercised at any time prior to expiration. Most listed stock options, including those on European exchanges are US style options. Important exceptions are certain low strike price options and options on shares with restricted transferability. Most listed options on other instruments are also US-style options, but a number of European style options have been introduced in recent years, particularly on stock indices and currencies.

Page last modified on Wednesday November 27, 2013 12:28:24 GMT-0000