Exercise Styles
American Style
American style options can be exercised any time until expiry.
Some examples of American-style options are: stock options, bond options, and currency options, .
European Style
European style options can only be exercised on expiry (not before).
Some examples of European-style options are: index options and interest rate options.
| Exercise Styles * | |
|---|---|
|
American-style |
European-style |
|
Stock
Options |
Index
Options |
|
Bond
Options |
Interest Rate
Options |
|
Currency
Options (are commonly either American or European) | |
| * This table shows the typical exercise style of several types of options, however there are some exceptions. For contract specifications visit the "products" link on the options exchange the contract trades on. | |
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