CHAPTER 3
Types of Options
There are several different types of options, which have the characteristics that we have outlined in the previous chapter; however, there some options that have slightly different characteristics and one particular type—the binary option—which is very different from other options. Options are categorized in classes as follows:
American Type Option: This term refers to how the option is exercised. An American option can be exercised at any time during the life of the contract. It could be exercised a few days after the contract is opened or at any time before the expiration date. These options are the most used in today’s markets and all the examples of options in this book are American type options.
European Type ...
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