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Depends on the option. "American options" can be exercised at any time before the expiration, "European options" can only be exercised at the end.
by TheCoelacanth 9y ago
Depends on the option. "American options" can be exercised at any time before the expiration, "European options" can only be exercised at the end.
- perl4ever 9y agoI don't see how that distinction relates to my comment. I wrote "buy or sell", not "exercise". And the parent comment didn't mention exercise either. However, your comment is definitely more evidence that you can't make options self-explanatory by renaming them.
- TheCoelacanth 9y agoThe comment you replied to was clearly referring to exercising options rather than buying or selling them. An American call option would be an option to buy something on or before a certain date. A European put option would be an option to sell something on a certain date.
- perl4ever 9y agoYes, the parent comment was referring to exercising options, but the whole point of my comment was about ambiguity and misunderstanding, so you're missing the point...about missing the point.