The European option refers to an option transaction that can be exercised only at the exercise date (maturity date). Optional trading is a type of derivative, and a certain quantity is determined from the beginning irrespective of the current market price at a certain date (within the period) from now on the currency, stocks, interest rates, bonds and commodity underlying assets It refers to a transaction that buys and sells the right to buy or sell at a certain price (exercise price). Currently the European option is adopted for index option transactions and securities option transactions of the Osaka Exchange. The European option has also been introduced in TOPIX option transactions and securities option transactions on the Tokyo Stock Exchange. Also, a type that allows you to exercise rights at any time during the exercise period for the European option (from the start date to the maturity date) is called “American Option”. European option is more cheap for the option price because the time to exercise can be freely set.
European option and American option, Bermuda type
In option transactions, certain M & A transaction terms are used, but the contract price of the item is also called the exercise price. The strike price represents how much the price is in order to trade a certain item. This is also called strike price, sometimes called exercise price. There are option prices in words that are easily confused with the strike price. The option price tells the price of the option right itself. The option exercise method has the European option and the American option but these two major differences are the European type that can be exercised on the last day of the exercise period and the American type features that you can trade at any time if it is during the exercise period It is a difference. Whether the European option or the US option is convenient will depend on the purpose of using the option. If it is a European type you can only trade on a fixed day, but you can designate and trade anywhere in the American type. There are also Bermuda types besides these.