Abstract
The models that we have created thus far are designed to price European options, which can only be exercised at the expiration time. However, in the real world, most stock options are of the American variety. In this chapter, we want to take a look at the issue of pricing American options, which can be exercised at any time between the purchase date and the expiration date.
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© 2012 Steven Roman
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Roman, S. (2012). Optimal Stopping and American Options. In: Introduction to the Mathematics of Finance. Undergraduate Texts in Mathematics(). Springer, New York, NY. https://doi.org/10.1007/978-1-4614-3582-2_9
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DOI: https://doi.org/10.1007/978-1-4614-3582-2_9
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Publisher Name: Springer, New York, NY
Print ISBN: 978-1-4614-3581-5
Online ISBN: 978-1-4614-3582-2
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