European Option

This Issue in United States

Concept of European Option in Futures Trading

In this context of financial law, the following is a definition of European Option: An option that may be exercised only on the expiration date. See American Option.

European Option

Concept of EuropeAn option (i.e. the right to buy or sell a financial instrument at some agreed conditions) in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): An option (i.e. the right to buy or sell a financial instrument at some agreed conditions) that can only be exercised by the buyer on the expiration date

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See Also

• Derivatives Contract