American Option
An American Option grants its holder the flexibility to exercise the contract at any point before or on its expiration date, offering greater control compared to other option types. However, in India, American-style options are not available for trading. The Indian financial markets primarily offer European-style options, which can only be exercised on the expiry date. This distinction limits the timing flexibility for investors in India, as they cannot act on market movements prior to expiration. Understanding these regional differences is crucial for investors navigating global derivatives markets, as contract terms significantly impact trading strategies and potential outcomes.
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