Does the Early Exercise Feature Apply to American-Style Put Options as Well?
Yes, the early exercise feature applies to American-style put options, allowing the holder to sell the underlying asset at the strike price at any time up to expiration. Early exercise of a put option is often more likely than a call, especially when the put is deep in-the-money and interest rates are high.
Glossar
Exercise Feature
Decision ⎊ The exercise feature grants the holder of a long option the unilateral right, but not the obligation, to execute the contract at the agreed-upon strike price before or at expiration.
American Put Option
Exercise ⎊ An American put option within cryptocurrency derivatives grants the holder the right, but not the obligation, to sell an underlying asset at a specified strike price on or before the expiration date.
Early Exercise Feature
Feature ⎊ The Early Exercise Feature is the defining characteristic of American style options, permitting the holder to execute their contractual right to buy or sell the underlying asset before the official expiration date.
Early Exercise
Trigger ⎊ Early exercise, within cryptocurrency options and financial derivatives, denotes the right ⎊ but not the obligation ⎊ of the option holder to realize the intrinsic value of the contract prior to its scheduled expiration date.