By Brian M. Reiser American Options are a style of options contracts that allow you to exercise an option on any date up until the expiration date. That’s contrasted with European Options, which only allow you to exercise the contract on the expiration date, never before.
There are different pros and cons to American options contracts. Sometimes, it’s to the advantage of the investor to exercise the contract early. Other times, it’s better to hold on until the expiration date, or even to sell the contract back on the market early.
In this article, we will look at what American options are and how they work, …read more
