European Exercise

Definition:

A feature of an option that stipulates that the option may only be exercised at its expiration. Therefore, there can be no early assignment with this type of option. Most index options are European-style exercise.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

No Protest

Instructions given to a collecting bank not to protest a specific item in the event of non payment or non acceptance.

Subscribe to the Term of the Day via email Get the Term of the Day in your inbox!


Create your free portfolio