European-style option

From ACT Wiki
Jump to navigationJump to search

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'.


See also