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Investments at a glance

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Investments at a glance

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There are three styles of options: American, European and Capped. In the case of an American option, the holder of an option has the right to exercise his option on or before the expiration date of the option; otherwise, the option will expire worthless and cease to exist as a financial instrument. At the present time, all exchange-traded stock options are American-style. A European option is an option which can only be exercised during a specified period of time prior to its expiration. A Capped option gives the holder the right to exercise that option only during a specified period of time prior to its...

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