Abstract
In the European and American options of option pricing theory, the time period between the time the option is purchased and the time at or before which the option has to be exercised is fixed and known. If the purchase time is taken to be t = 0 and the exercise time t = T, then the European option pricing theory requires the option to be exercised at t = T (the date of maturity); under the American option, you can exercise it at any time up to T, and moreover, the exercise time can be random (cf. (Karatzas and Shreve, 1988)).
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
Author information
Authors and Affiliations
Rights and permissions
Copyright information
© 2000 Springer Science+Business Media New York
About this chapter
Cite this chapter
Kallianpur, G., Karandikar, R.L. (2000). The Russian Options. In: Introduction to Option Pricing Theory. Birkhäuser, Boston, MA. https://doi.org/10.1007/978-1-4612-0511-1_14
Download citation
DOI: https://doi.org/10.1007/978-1-4612-0511-1_14
Publisher Name: Birkhäuser, Boston, MA
Print ISBN: 978-1-4612-6796-6
Online ISBN: 978-1-4612-0511-1
eBook Packages: Springer Book Archive