Diffrence between European v/s American Options

SEBI came out with a circular on 27th November, 2010 giving freedom to Stock Exchanges for choosing style of Options (European / American) on Stocks. It gives flexibility to stock Exchange to offer either European style option or American Style Options.
As of Today Index Options are European Style options and all Stock Options are American style option and after this Decision made by SEBI NSE has decided to introduce European Options on Stocks instead of American Options on Stocks. The implementation date of such change is from January, 2011 contracts …
Read the full story »