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.

Look at other dictionaries:

  • American Option — An option that can be exercised anytime during its life. The majority of exchange traded options are American. Since investors have the freedom to exercise their American options at any point during the life of the contract, they are more… …   Investment dictionary

  • American option — Fin an option contract that can be exercised at any time up to and including the expiration date. Most exchangetraded options are of this style. See also European option. Also known as American style option …   The ultimate business dictionary

  • American option — An option that can be exercised on any business day prior to its expiry date. Compare: European option …   Accounting dictionary

  • American option — /əˌmɛrɪkən ˈɒpʃən/ (say uh.merikuhn opshuhn) noun Stock Exchange an option that can be exercised at or before its maturity date. Compare European option …   Australian English dictionary

  • American option — noun an option that can be exercised at any date between the issue date and the expiry date …   Wiktionary

  • American option — See option …   Big dictionary of business and management

  • American option — right to buy or sell an asset at a set price at any time until the expiration date (Economics) …   English contemporary dictionary

  • modified American option — See Bermuda option. American Banker Glossary …   Financial and business terms

  • Option style — In finance, the style or family of an option is a general term denoting the class into which the option falls, usually defined by the dates on which the option may be exercised. The vast majority of options are either European or American (style) …   Wikipedia

  • Option (finance) — Stock option redirects here. For the employee incentive, see Employee stock option. Financial markets Public market Exchange Securities Bond market Fixed income …   Wikipedia

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