The term recorded option describes a put or a telephone that’s traded on a foreign trade. The following options are two standardized classes: American options and European options.
Also called an exchange-traded option, a recorded option is the one which is in love with a nationwide exchange like the Chicago Board Options Exchange, Chicago Board of Trade, the NASDAQ, along with New York Stock Exchange. Listed options will probably be standardized related to budget dimensions. The option may also plainly state the details of the agreement, for example, exercise price and expiry date.
Listed options comprise both American options, which is exercised any time before expiry European along with European options, that could simply be exercised during expiration time. Options which is traded over aren’t recorded options. The stipulations of overthecounter contracts aren’t standardized as well as the market place is relatively illiquid when comparing to federal trades, where recorded options are traded.