2021 ISDA Interest Rate Derivatives Definitions

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American in a Nutshell

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American in all its glory

12.4.1 American. “American” means a style of Option Transaction or Optional Early Termination Right, specified as such in the Confirmation, pursuant to which the right or rights granted are exercisable during an Exercise Period consists of a period of days.

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Overview

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Summary

An American option is an option which one can exercise at any point until it expires, which is hence a deal more valuable and less flaky than a European option, being one you can exercise only at expiry. There are complicated mathematical charts that could explain this for you. Let me Google that for you

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