An American option give an investor the right but not the obligation to buy a call or sell a put at a set strike price at any time prior to the contract’s expiry date. American options provide investors a way to hedge risk or speculate. In general,...
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An American option give an investor the right but not the obligation to buy a call or sell a put at a set strike price at any time prior to the contract’s expiry date. American options provide investors a way to hedge risk or speculate. In general, American options do not have a closed-form solution. This presentation provides a practical guide for pricing an American equity option. You can find more details at http://www.finpricing.com/lib/EqAmerican.html
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