American-style option

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Personal Finance

A listed option that you can exercise at any point between the day you purchase it and its expiration date is called an American style option. All equity options are American style, no matter where the exchange on which they trade is located.

In contrast, you can exercise European style options only on the last trading day before the expiration date, not before. Index options listed on various US exchanges may be either American- or European-style options.

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