Author Topic: American Vs. European Options  (Read 301 times)

honglu69

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American Vs. European Options
« on: June 01, 2018, 12:53:25 am »
American and European options have similar characteristics but the differences are important. In this article, we'll discuss their characteristics and how options traders can use this knowledge to avoid costly losses.

Key Differences

There are four key differences between American- and European-style options:

Underlying

Tradable commodities/stocks/ETFs trading in U.S.A tend to have American style options while those trading in Europe tend to have European style options.


The Right To Exercise

Owners of American-style options may exercise at any time before the option expires while owners of European-style options may exercise only at expiration.
This is major difference of two different style of options.

Cash Settlement
It's advantageous to all parties when options are settled in cash

The option owner receives the cash value and the option seller pays the cash value of the option. That cash value is equal to the option's intrinsic value. If the option is out of the money, it expires worthless and has zero cash value.

These cash-settled options are almost always European-style and assignment only occurs at expiration, thus the option's cash value is determined by the settlement price.

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bkapthang

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Re: American Vs. European Options
« Reply #1 on: June 01, 2018, 03:32:19 am »
American and European options have similar characteristics but the differences are important. In this article, we'll discuss their characteristics and how options traders can use this knowledge to avoid costly losses.

Key Differences

There are four key differences between American- and European-style options:

Underlying

Tradable commodities/stocks/ETFs trading in U.S.A tend to have American style options while those trading in Europe tend to have European style options.


The Right To Exercise

Owners of American-style options may exercise at any time before the option expires while owners of European-style options may exercise only at expiration.
This is major difference of two different style of options.

Cash Settlement
It's advantageous to all parties when options are settled in cash

The option owner receives the cash value and the option seller pays the cash value of the option. That cash value is equal to the option's intrinsic value. If the option is out of the money, it expires worthless and has zero cash value.

These cash-settled options are almost always European-style and assignment only occurs at expiration, thus the option's cash value is determined by the settlement price.
Let's think about how to put MTC into three major markets: the United States, Europe, Asia. MTC will be a recognized currency rather than an Altcoins.

DMG_The_Penguin

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Re: American Vs. European Options
« Reply #2 on: June 01, 2018, 04:29:40 pm »
for that, we need platforms that accept MTC. and to make them accept MTC first we need to make people accept MTC, and with that in mind.power to the people!just my MTC
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ayuluv

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Re: American Vs. European Options
« Reply #3 on: June 02, 2018, 05:26:11 am »
for that, we need platforms that accept MTC. and to make them accept MTC first we need to make people accept MTC, and with that in mind.power to the people!just my MTC
Stay positive! It will happen

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abhijoysarkar

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Re: American Vs. European Options
« Reply #4 on: June 02, 2018, 08:43:06 pm »
Let's think about how to put MTC into three major markets: the United States, Europe, Asia. MTC will be a recognized currency rather than an Altcoins.
"American" and "European" are just nomenclatures for options to suggest when they can be exercised. All exchange traded options are American. European options are usually available OTC only. So, both "American" and "European" options can be traded in US, Europe and Asia.
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Frank

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Re: American Vs. European Options
« Reply #5 on: June 03, 2018, 06:06:50 am »
American and European options have similar characteristics but the differences are important. In this article, we'll discuss their characteristics and how options traders can use this knowledge to avoid costly losses.

Key Differences

There are four key differences between American- and European-style options:

Underlying

Tradable commodities/stocks/ETFs trading in U.S.A tend to have American style options while those trading in Europe tend to have European style options.


The Right To Exercise

Owners of American-style options may exercise at any time before the option expires while owners of European-style options may exercise only at expiration.
This is major difference of two different style of options.

Cash Settlement
It's advantageous to all parties when options are settled in cash

The option owner receives the cash value and the option seller pays the cash value of the option. That cash value is equal to the option's intrinsic value. If the option is out of the money, it expires worthless and has zero cash value.

These cash-settled options are almost always European-style and assignment only occurs at expiration, thus the option's cash value is determined by the settlement price.
Let's think about how to put MTC into three major markets: the United States, Europe, Asia. MTC will be a recognized currency rather than an Altcoins.
In my opinion, MTC is the only currency that can outperform btc

ayuluv

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Re: American Vs. European Options
« Reply #6 on: June 03, 2018, 01:56:21 pm »
American and European options have similar characteristics but the differences are important. In this article, we'll discuss their characteristics and how options traders can use this knowledge to avoid costly losses.

Key Differences

There are four key differences between American- and European-style options:

Underlying

Tradable commodities/stocks/ETFs trading in U.S.A tend to have American style options while those trading in Europe tend to have European style options.


The Right To Exercise

Owners of American-style options may exercise at any time before the option expires while owners of European-style options may exercise only at expiration.
This is major difference of two different style of options.

Cash Settlement
It's advantageous to all parties when options are settled in cash

The option owner receives the cash value and the option seller pays the cash value of the option. That cash value is equal to the option's intrinsic value. If the option is out of the money, it expires worthless and has zero cash value.

These cash-settled options are almost always European-style and assignment only occurs at expiration, thus the option's cash value is determined by the settlement price.
Let's think about how to put MTC into three major markets: the United States, Europe, Asia. MTC will be a recognized currency rather than an Altcoins.
In my opinion, MTC is the only currency that can outperform btc
Yes based on current situation, the history will repeat itself

Sent from my Redmi Note 4 using Tapatalk


BinarySoul

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Re: American Vs. European Options
« Reply #7 on: June 06, 2018, 02:31:31 pm »
American and European options have similar characteristics but the differences are important. In this article, we'll discuss their characteristics and how options traders can use this knowledge to avoid costly losses.

Key Differences

There are four key differences between American- and European-style options:

Underlying

Tradable commodities/stocks/ETFs trading in U.S.A tend to have American style options while those trading in Europe tend to have European style options.


The Right To Exercise

Owners of American-style options may exercise at any time before the option expires while owners of European-style options may exercise only at expiration.
This is major difference of two different style of options.

Cash Settlement
It's advantageous to all parties when options are settled in cash

The option owner receives the cash value and the option seller pays the cash value of the option. That cash value is equal to the option's intrinsic value. If the option is out of the money, it expires worthless and has zero cash value.

These cash-settled options are almost always European-style and assignment only occurs at expiration, thus the option's cash value is determined by the settlement price.
Let's think about how to put MTC into three major markets: the United States, Europe, Asia. MTC will be a recognized currency rather than an Altcoins.
In my opinion, MTC is the only currency that can outperform btc
I agree with you Frank

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BinarySoul

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Re: American Vs. European Options
« Reply #8 on: June 06, 2018, 02:32:56 pm »
American and European options have similar characteristics but the differences are important. In this article, we'll discuss their characteristics and how options traders can use this knowledge to avoid costly losses.

Key Differences

There are four key differences between American- and European-style options:

Underlying

Tradable commodities/stocks/ETFs trading in U.S.A tend to have American style options while those trading in Europe tend to have European style options.


The Right To Exercise

Owners of American-style options may exercise at any time before the option expires while owners of European-style options may exercise only at expiration.
This is major difference of two different style of options.

Cash Settlement
It's advantageous to all parties when options are settled in cash

The option owner receives the cash value and the option seller pays the cash value of the option. That cash value is equal to the option's intrinsic value. If the option is out of the money, it expires worthless and has zero cash value.

These cash-settled options are almost always European-style and assignment only occurs at expiration, thus the option's cash value is determined by the settlement price.
Let's think about how to put MTC into three major markets: the United States, Europe, Asia. MTC will be a recognized currency rather than an Altcoins.
In my opinion, MTC is the only currency that can outperform btc
Yes based on current situation, the history will repeat itself

Sent from my Redmi Note 4 using Tapatalk
I so would like that to happen

Sent from my SM-J111F using Tapatalk

Marinecoin - Trade crypto, gold, silver, stocks and many more at 5x-100x leverage
https://www.youtube.com/watch?v=AL1GA3uGDLI&feature=youtu.be
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