American-style options and european-style options

Assignment Help Financial Management

Reference no: EM132064804

What is the difference between American-style options and European-style options? American style options are only legal in markets located in the United States, but European-style options are legal anywhere in the world. American-style options are only valid for U.S. equities, but European-style options are used for commodities only. European-style options can be exercised at any time, but American-style options can only be exercised on the day of expiry. American-style options can be exercised at any time before expiry, but European-style options can only be exercised on the day of expiry.

Reference no: EM132064804

Questions Cloud

How would you change or shape the attitudes : Identify and describe the attitudes of at least four (two positives and two negatives) employees followers at your workplace.

Risk averse individuals will : Risk averse individuals will:

Why was it a fallacy to assign a aaa ratings : Why was it a fallacy to assign a ‘AAA' ratings to these securities backed by these mortgages?

Find the amount credited to the account : An invoice for $8630, dated October 5, was received by a company with the terms 5/15 EOM. A decision was made to make a partial payment of $400 on November 2.

American-style options and european-style options : What is the difference between American-style options and European-style options?

People management within an organisation context : This essay is like your blog. It is an essay addressing a issue related to people management within an organisation context.

How many packages will the dodger have to sell to break even : The Artful Dodger has decided to sell packages of firecrackers at an upcoming parade. The packages will cost the Dodger 50 cents each.

Compare and contrast three data encryption standards : 1. Compare and contrast three data encryption standards for WiMAX networks?

Development of understanding during the unit : Each weekly portfolio is to be no more than 4 pages long. The portfolio shows your development of understanding during the unit. Naturally

User Account

All Pages