Why are most exchange-traded options American-Style Option?
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micheal
Apprentice
Joined: 19 Jan 2008
Posts: 3
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 Posted: 07/20/08 - 06:09 Post subject: |
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| I have been looking to get a contract option and I have a lot of great ideas how to make use of it. Now, it would be best if I exercised it only on the expiration date. However, I am not too experienced and I would like to know more about why are most exchange-traded options American-Style Option. Thanks in advance. |
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gearalt
Apprentice
Joined: 01 Oct 2006
Posts: 5
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| Posted: 08/18/08 - 22:23 Post subject: |
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| Each type of contract related to the options, equity options, more precisely, has different rules of exercising it. As it were, there are various sorts, and most notable are American and European-style options. Now, it seems to me that it is best if you choose to deal with European-style, as that is the one which can be exercised solely on the date of the expiration. On the other hand, American-style option offers more flexibility. I have tried it, and I am more satisfied with these types of options. That is also the reason why there are more American-style options. |
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