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Financial Terms related to Option
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glossary with more than five thousand financial
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Findthousandsoffinancialtermsatwww.
ftpall.
com
Financial Terms related to Option
This document is part of the valuable contents
available at www.
ftpall.
com, a free online
glossary with more than five thousand financial
and business terms.
This document can be copied and distributed freely
respecting its original format.
It is forbidden its
transcription, translation or change on its format
without authorization of its author or editor.
OPTION
Abandonment option
• The option of terminating an investment earlier than originally planned.
American option
• An option that may be exercised at any time up to and including the expiration
date.
Related: European option
• An option that may be exercised at any time during the life of the option.
Stock
options that trade in U.
S.
option exchanges, such as the CBOE, are of American
types.
Index options are of either American (option on S&P100 index, called OEX) or
European types (option on S&P500 index, called SPX).
See call and put op
Less