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AMERICAN OPTION

American Style Option is an option contract that may be exercised at any time between the date of purchase and the expiration date. Call options give the option to buy the underlying at a certain price, so the buyer would want the underlying to go up. Put options give the option to sell the underlying at a certain price, so the buyer would want the underlying to go down.


AMERICAN OPTION REFERENCES

Hull, J. (2011). Options, Futures, and Other Derivatives (8th ed). Pearson / Prentice Hall.

Duffie, D. (2001). Dynamic Asset Pricing Theory (3rd ed). Princeton University Press.

Bjork, T. (2009). Arbitrage Theory in Continuous Time (3rd ed). Oxford University Press.

Lipton, A. (2001). Mathematical Methods for Foreign Exchange: A Financial Engineer's Approach. World Scientific.

Longstaff, F. A. & Schwartz, E. S. (2001). Valuing American Options by Simulation: A Simple Least-Squares Approach. Review of Financial Studies vol. 14.

Taleb, N. (1997). Dynamic Hedging: Managing Vanilla and Exotic Options. Wiley Finance, New York.

Passarelli, D. (2008). Trading Option Greeks: How Time, Volatility, and Other Pricing Factors Drive Profit. Bloomberg Press, New York.
 


AMERICAN OPTION RESOURCES


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