Microsoft PowerPoint - PoF.ppt

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“American” vs. “European” optionsƒ 160

“European” style options

provide the right to exercise

only at the expiration date.
ƒ

“American” options

give the right to buy or sell the

underlying asset at any time on or before a prespecifiedfuture data (called the expiration date);

“early exercise”

.

Derivative securities: Options - Introduction

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