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To: mishedlo who wrote (127838)10/5/2001 9:34:53 PM
From: robnhood  Respond to of 436258
 
<<I thought they had to be held til expiry.>>
That can't possibly be true... Who would buy them?



To: mishedlo who wrote (127838)10/5/2001 9:37:53 PM
From: Haim R. Branisteanu  Read Replies (1) | Respond to of 436258
 
European option settle for cash and can be exercised only at expiration. American option settle for the underlying instrument and can be exercised at will ......any time until and at expiration.



To: mishedlo who wrote (127838)10/5/2001 9:41:21 PM
From: Tommaso  Respond to of 436258
 
You just sell them to someone else. It's just you cannot exercise them until they expire. Whereas American style options can be exercised any time.

There's a lot of information on these matters on the CBOE site and elsewhere--just use a search engine and put in the relevant words.


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