V. 22:1 (37): Explore Your Options by Tom Gentile

V. 22:1 (37): Explore Your Options by Tom Gentile
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Explore Your Options by Tom Gentile

EUROPEAN VERSUS AMERICAN

At the end of your November 2003 column, you referred to the Europeanstyle settlement, saying that you could sell options without the risk of unexpected early assignment. Could you please explain what you meant by this? óD. Streich

There are two types of settlement with options: European style and American style. European options cannot be exercised on any date prior to expiration, though they can be bought and sold at any time. American-style options can be exercised at any time prior to expiration.




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