Are American-Style Options Common in the Over-The-Counter (OTC) Cryptocurrency Derivatives Market? ▴ Learn

Are American-Style Options Common in the Over-The-Counter (OTC) Cryptocurrency Derivatives Market?

Yes, American-style options are relatively common in the OTC crypto derivatives market, especially among institutional players. The OTC market allows for greater customization of terms, including the exercise style.

Institutions often prefer this flexibility for complex hedging or speculative strategies, making the American-style feature a key component of bespoke contracts.

Why Is a European-Style Option Typically Less Expensive than an American-Style Option on the Same Underlying Asset?

Does the Early Exercise Rule Apply Equally to American-Style Put Options?

What Is the Practical Difference in Flexibility for a Holder of an American-Style Crypto Option?

Why Are European Options Typically Less Expensive than American Options?