Risk glossary


American-style option

An American-style option may be exercised at any time during its lifetime, up to and including the expiration date. It contrasts with European options, which can be exercised only on the expiry date. A variation is the ‘semi-American’, or ‘Bermudan’, where options can be exercised only on a set number of dates before expiry.

* see also Bermudan-style option; European-style option

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