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Options Glossary - Most Used Terms


American Style Option

An option contract that can be exercised at any time between the date of purchase and the expiration date. Most exchange-traded options are American style.

See Also:

Option: A contract that gives the owner the right, but not the obligation, to buy or sell a particular asset (the underlying stock) at a fixed price (the strike price) for a specific period of time (until expiration) . The contract also obligates the writer to meet the terms of delivery if the contract right is exercised by the owner.

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