American option

2021 ISDA Interest Rate Derivatives Definitions A Jolly Contrarian owner’s manual™ American in a Nutshell™ The JC’s Nutshell™ summary of this term has moved uptown to the subscription-only ninja tier. For the cost of ½ a weekly 🍺 you can get it here. Sign up at Substack. 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. edit Resources and Navigation Template:M res DI 2021 Index: Click ᐅ to expand: 2021 ISDA Definitions - Premium Premium version of this page

Overview

edit

Summary

edit

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

See also

edit

• European option
• Bermuda option
• Bermuda Option Triangle
• Belgian dentist