American

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Related to American option: Bermudan option
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Synonyms for American

Yankee or Yank

Synonyms

Yankee or Yank

Synonyms

  • Yankee or Yank
  • Yankee Doodle

Synonyms for American

a native or inhabitant of the United States

References in periodicals archive ?
HUANG, Accurate American option pricing bygrid streting and higer order finite differences, Technical Report, Delft Institute of Applied Mathematics, Delft University of Technology, Delft, 2005.
This is also the case of American options whose price depends on the optimal exercise boundary.
In this article, we use the binomial model, which is more adapted to American options.
The BS formula strictly applies to European options only--not to American options, which can be exercised any time prior to expiry--and it requires modifications for assets that pay dividends, such as stocks, or that don't require an initial outlay, such as futures.
Although not discussed here, deltas for American options can be similarly derived for the example shown here.
Foreign currency options, particularly American options, are also useful when the hedger is uncertain about the date when the foreign currency will be needed.
Where exit from an investment is often seen as a viable American option, perpetuity of ownership was more likely to be the German or Japanese goal.
This option to transfer would behave very much like an American option to lock in a GMDB at a time of the policyholder's own choosing.
The holder of an American option can exercise it any time up to and including the expiration date.
In an important contribution, Geske and Johnson [11] showed that it was possible to value an American option by using a series of compound options.
A European option may be exercised only at maturity whereas an American option may be exercised prior to maturity.
Our contribution to the existing literature consists in taking explicitly into account the possibility of early exercise and, in particular, doing this by applying and manipulating concepts and results from American option pricing theory.
Whaley, 1987, Efficient Analytic Approximation of American Option Values, Journal of Finance, 42: 301-320.
Remembering that the surrender option is in fact an American option since its maturity is unknown at inception of the contract, Figure 3 represents the random cash flow provided by the exercise of the American option, namely the quantity h(t)[I.
In general, an American option can be exercised any time on or before the option's expiration date, while a European option can only be exercised on the expiration date and not before.
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