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Options come in different styles. The
style really relates to when the options can be exercised. The two styles are:
American-Style - At this point in time
all stock options traded on the marketplaces are American-style. This means that the
option holder can exercise the option at any time from purchase until the expiration date.
European-Style - A European-style
option can only be exercised at expiration. Several index options traded on the
marketplaces are European-style.
American-style options are the most
common and will be used in all examples in this text.
{capped-style no longer exists}
| Where to Trade
Options Options are regulated
by the Securities and Exchange Commission (SEC) and are traded by individuals,
institutional investors and professional traders in the following securities market
places:
| The American Stock Exchange The Chicago Board Options Exchange
The Pacific Stock Exchange
The Philadelphia Stock Exchange |
AMEX CBOE
PSE
PHLX |
Buy and sell orders for
options contracts are transacted through brokers. options’ performance can be tracked
through the market places on which they trade, in financial tables on many major
newspapers, and on nasdaq.com. |
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This site discusses exchange-traded options issued by The
Options Clearing Corporation. No statement on this site is to be
construed as a recommendation to purchase or sell a security, or to
provide investment advice. Options involve risks and are not suitable
for all investors. Prior to buying or selling an option, a person must
receive a copy of Characteristics and Risks of Standardized Options.
Copies of this document are available from The American Stock Exchange,
86 Trinity Place, New York, NY 10006 or The Options Clearing
Corporation, 440 S. LaSalle Street, Suite 2400, Chicago, IL 60605.
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