European-style option: Difference between revisions
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More specifically, a derivative that gives its holder the right to buy or to sell a certain amount of the underlying financial product on its date of expiry or for a short specific period (i.e. one day) just beforehand. | More specifically, a derivative that gives its holder the right to buy or to sell a certain amount of the underlying financial product on its date of expiry or for a short specific period (i.e. one day) just beforehand. | ||
Also known more simply as a 'European option'. | |||
Latest revision as of 13:30, 26 October 2016
1.
An option which can be exercised only on its final maturity date.
2.
More specifically, a derivative that gives its holder the right to buy or to sell a certain amount of the underlying financial product on its date of expiry or for a short specific period (i.e. one day) just beforehand.
Also known more simply as a 'European option'.
